All Forum Posts by: Stacey Bochenski

@Caleb Bryant congratulations! Looks great :)

@Nancy Tran @Jay Sheth

Hi guys, same question here. What did you decide to do?

@Caroline Gerardo thank you for your reply!  This is actually great news, as the properties were all cash purchases and the deeds can be linked to the same names.  I may be worried about nothing at all.  This is why I love BP. :)

@Jesse LeBlanc Thank you!  Again, not what I was hoping for, but definitely what I needed to hear.  Most of your assumptions are correct, and I've already done one refi in another neighborhood (similar situation though) with no issues.  I anticipate these being similar, but the thought occurred to me that I may have made a problem for myself.  I'll likely hold off on initiating the refi for a 6-8 months, and let appreciation (forced and natural) take it's course.  I truly appreciate your time and insight!  :)

@Joe Splitrock this isn’t the answer I wanted, but it is exactly the information I was seeking. I appreciate your time to explain it. While these are just easy example numbers, mine aren’t too far off and your advice is spot on. Thanks so much! :)

@Wayne Brooks you are correct. :)

@Jonathan Greene Thank you.  I agree and also think it should be recorded at the final sales price.  I don't know if this is a weird Alabama rule or what, but I've used two wholesalers and two escrow offices and it's happened with both combinations.  I'm going to try reaching out to the escrow office as well as an appraiser I've used out there and see if they have any insight. I just thought maybe there was a glaring flaw in my line of thinking or an obvious strategy that the BP folks could set me straight on.

Thank you for your reply @Wayne Brooks  I agree with you that I don't think it is going to be taken into consideration.  My question though is, how can I make it be considered?  I'm trying to make the argument that the assignor fee is part of MY purchase price of that property.  The entire purchase price of a property should be considered for a comp, regardless of what the wholesaler got it for.  

For example: a wholesaler gets a property for $50k and assigns it to me off market for $60k. If this property were to be listed on the MLS, it would sell for $90k. Now this happens 8 times in the past 6 months. Two additional properties in the neighborhood are listed on the MLS and sell for $90k during the same 6 months.

My comps are now 8 properties at $50k and two at $90k. The comps on the wholesale deals are listed as $50k, but that is not an accurate representation of what I purchased for, so my comps are artificially dragged down.   

I'm just trying to talk it through and see if anyone has any insight. :)

Since the beginning of the year, I have purchased several properties in a neighborhood from a wholesaler, and I personally know of a second investor who has also purchased several in the same neighborhood from wholesalers (between us, we have 8 in the neighborhood of about 50 properties). When the sale gets recorded, the "sale price" is what the wholesaler and the owner agreed upon, and doesn't include the wholesaler's assignor fee (the price I actually pay). The lower "sale price" is what is being reflected on zillow/MLS sites, thus we are bringing down our own comps.

I wouldn't care, except I would like to refi and pull the cash out of them and I'm afraid the properties will not appraise high enough because our comps are artificially low.  There have been two "on market" sales that are substantially higher than our properties, so that helps, but I don't think the appraiser will use only 2 out of 10 sales in the neighborhood in the past 6 months. 

All I can think of so far is to do a rebuttal on the appraisal and submit my HUD statements, but I don't feel comfortable asking the other investor for their HUDs. Has anyone experienced this, and if so, how do you get an accurate appraisal?

Thanks! :)

@Murali Jesudoss it may the the difference between owner occupied and investor owned.