All Forum Posts by: Nicholas Weckstein

@Steve Morris DARN! don't you worry my friend, ive passed failure 100 times and this won't be the last. I won't stop moving onwards and upwards. 

Already working other deals just incase, just ordered a title check on a cash deal that seems way to good to be true, I'm sure it is lol. 

Im actually waiting for my RE license to transfer from NYS, ive come to realize that if you want access to the best deals, being an agent opens all the doors. I actually consult for quite a few out of staters who invest in my area. Boots on the ground.

@Steve Morris RIGHT!! I actually just spoke with the appraiser, he is sticking to his guns based on something that honestly, I agree with. His valid point here is this -

The county, for tax purposes, is using 1600sq ft as a baseline. his reply to me was this

"the county/township may have approved it as a 3 unit, and whether they realize it or not, are not taxing it correctly. He said if you want, have it reassessed and then I will change it."

but again we are 2 weeks from closing and the owner likely isn't going for it. Im going to try to work him down on the price more today. id be willing to meet in the middle. Mean time I'm waiting on something in writing from the township and county to get over to my contact with the bank. Once we have that we can appeal the appraisal but if he sticks to his guns he won't change it

@James Cox he’s sticking to his decision pretty hard at this point. Even after me verifying with the county and municipality that it is indeed a LEGAL 3 unit.

@Kai Van Leuven tried that, he’s cocky and thinks he’ll go back to market and get more money.

He’s mistaken. Especially bc a pending sale back on the market never looks good.

Also In Pa if a property fails to close, the owner is obligated to disclose any findings in the most recent inspection in the sellers disclosure.

Scrambling now...2 weeks from closing to try and get stuff in writing from the county/city showing it’s a legal 3 unit. They sent me the most recent inspection from 2019. Which it passed. Problem is it does not specify how many units.

Needless to say we can appeal the appraisers report if we get this but that still doesn’t mean he will consider it.

Alright, so *UPDATES AS PROMISED**(ill try to tag as many of you as I can) 

@Tony Kohnle @Tara S. @Don Gurganus @Kevin K. @Jeff Copeland @Andrea C. @Matt M. @Evan Polaski @Curtis Reid @Caleb Heimsoth. ...Ok too many to tag

So after spending most of the day on and off the phone with code enforcement, the sewer authority, and the tax collector. Everyone confirmed in fact that it is 3 units. They are willing to submit that in writing so I can get it to the appraiser. Even MORE shocked now. 

Biggerpockets for the win again!!!

@Jaquetta T Ragland @Evan Polaski @Ryan Avila @Curtis Reid @James Hamling 

So last night I received an email from the bank, who spoke with the appraiser...I was informed by them they believe it is an illegal 3rd unit. I know the idea would be to make it work at all costs. But for my investing strategy, this deal only works for me as a 3 unit. I don't buy 2 units that are 2 bedrooms each. At this point he was asking a pretty high market price for a 3 unit. Im going to place some calls today to the county and the township and see what I drum up. The bank doesn't seem to want to let me do another appraisal now...seems like they don't want to buy the loan now either. 

the problem I have with finding my own comps, is that while I can find 3 units at 140k all day long...I cannot find 3 units with that square footage.let alone a 2 unit at 1600 sq ft is what its at with the county. so no matter what, even if it is okay for 3 units. I run the risk of getting a big tax hike, and like some one said here...im sure they will try to come for back taxes. 

I debated playing hard ball and taking a shot at 100k. after sleeping on it though, I don't know that I want this place at all. As I said I'm not usually interested in duplex's unless the numbers are very appealing. There doesn't seem to be any value add opportunity. Since this had appeared to be turn key, and now its quite obviously not. 

again I'm keeping in mind the roof needs to be done too at some point in the near future. My gut tells me to walk away while I have the chance. MAYBE I could fight to have the 3rd unit recognized but I believe the cost, risk, and time...is just not worth it for something with not much value add.

at any rate I'm still going to place those calls today to make sure Ive done every drop of due diligence I can. I think the nail in the coffin is really the counties sq ft assessment. 

will update everyone later on tonight on which way things go

@Caleb Heimsoth I haven’t. And I’ve begun that process today. And will continue tomorrow. But yeah I just don’t know if this deal is worth it anymore. The appraiser sent me the square footage that’s being used for tax purposes and it matched his appraisal.

@Brian Hamel I was so frustrated today but after speaking to the appraiser. I actually found myself swayed to feeling like this guy is right.

It doesn’t seem to make sense.

You could get 5 appraisals and you’ll get 5 diff numbers.

@Jasmine Feeney I tried a little and he didn’t want to budge. Tm I’m going to hit him hard with a “here’s the number I’m willing to pay, if not...I’ll send the cancelation in and you can have fun going back on the market “ that numbers going to be pretty low and I doubt he will go for it.

In PA a new law passed that sellers now have to add items from the most recent inspection, should a sale not go through, in the disclosure. Add that with the apparently illegal 3rd unit. And a roof that’s on its back end.

Think this whole deal just blew up today.

But money spent on due diligence is much less than buying this at 140k so all and all. Learning experience. Time to RE strategize and onward and upward.

We are literally less than 30 days from closing.

@Victor S. At this point I’m seriously doubting the legality of the unit. Which is a major issue. They claim they can produce a recent inspection from the township (bi yearly rental inspection) showing it was signed off on.

Even weirder the sewer authority has it billed for 3 units.

But the appraiser confirmed that for tax purposes they are only using 1600 sq ft. Which is what he found it to be, due to not considering the basement unit livable.

If I go to the taxing authority. 2 things will happen...they either say no...then that unit is a no go. Or they say yes but then the taxes go up.

Seller is stuck on 140k. Not to mention the roof isn’t exactly new. But if it was a 3 unit at 140k I would have been willing to eat that cost, as it’s in a town I’ve been looking at pretty heavily. But now add this issue with the “3rd” unit. That’s 140k is looking real MAYBE 110k.

Idk that I want to do the deal at all anymore if the taxing body isn’t recognizing it as a 3 unit.