All Forum Posts by: Nicholas Weckstein

@Victor S. While speaking to the appraiser today, he told me that the other guy who was supposed to do the inspection the week before canceled because he knew the basement was going to be an issue. I was told that the appraiser couldn’t finish and had to go back. Just more weird stuff that was going on.

@Preston Quinn My next move...Either the seller drops the price or no deal. 

Because if we were to take this to the taxing body about the livable sq footage...if they deem that it IS in fact livable space...the appraiser said he will gladly change it. 

if they do that...the numbers change...

@Nicholas U. @Joey Wharton @Jim Spatzenfeld @Joe Splitrock @Will Gaston @Victor S. 

Well...live deal diaries happening today ...*new development*

After being pissed off all day long. I just got off the phone with the appraiser...Totally put some things into play that were a big flag. 

-The courthouse is only taxing the above grade portion of the house...meaning they left that square footage out as well

-The appraiser said that any basement more than 50% below grade is NOT considered livable space. even told me that he went to court a few years back and was fined because he did one and DID consider the basement. Also told me when I asked him about the rental discrepancy that the numbers he used for the income approach were based on him asking the tenants what they paid...so they either didn't know, or gave him the wrong numbers. 

The appraiser at this point is the only person in the deal who doesn't really rely on it going through to get paid.After speaking with him he literally said to me, yeah ive gotten 5 calls about this and I feel that I'm doing what's right. Its what I know to be true and have been through the court house over it. 

FURTHERMORE...for those of you who read all of this...my agent told me that he went to the property and had to come back to finish. the appraiser told me that the other guy canceled and didn't want to do it because of the basement he knew it would be a problem.

If they get another appraisal it may or may not be considered livable space based on who does it, that's what the appraiser told me too. I agree, because every agent knows a appraiser...im sure we could "find" one who will consider it. But is it in my best interest to roll the dice on that? what about exit strategy. 

in regard to one of the comps being from 1999...I asked him about this too..he said he looked and looked and looked. said it was a unique property based on the fact that it was a 1 level ranch. 

kind of on the fence of wanting to kill the deal because I dont trust what's going on...im sure I could get something from the county/township showing its a 3 unit...even the sewer authority is charging it as a 3...but if a court agrees its not considered livable space...even the taxes...being taxed at 1600 sq ft...which is what the appriser found to be livable sq footage. 

Thanks so much to everyone. This is why bigger pockets is such a valuable asset.

@Jim Spatzenfeld I agree 100%

I’m concerned about the legality of the 3rd unit at this point.

Have them sending me the most recent rental inspection from the township. Also going to start making calls.

@Joey Wharton I’m quite mad at myself that I didn’t go. I always do. Not really sure why I didn’t. BIG lesson learned there.

This whole situation now is a bit off putting.

@Nicholas U. The bank seems fine with another appraisal as long as I am the one who pays for it.

I haven’t even been able to get the damn appraiser on the phone. The number on the inspection for him isn’t in service. My agent sent me the number they had for him and he didn’t answer when I called.

I’m going to stay ok the appraiser but I’m also a bit irritated with the bank.

@Will Gaston yes, was my first thought...tried it. Owner won’t budge. He’s pissed obviously as well about this

@Joe Splitrock also with the income approach, he ignored that rent from the 3rd unit.

Also not that it’s a huge difference but put down 600 for a unit that’s rented at 650....ironically and I just realized this as I’m typing...the basement unit is the unit rented at 650...which means he actually left out one of the other units!! What the hell lol...this is all happening kind of today so just realized that...wow!

@Joe Splitrock good point, I’ve NEVER seen a report and underwritter come back so quickly either.

The bank seems to not care much if I want to do another appraisal they just want me to pay for it. I’m not sure who’s to blame.

@Victor S. Well it’s more of the principle of it I guess but I think my pride was getting in the way. $500 more wont hurt...better than no deal at all.

140k

GI 2185

Three, 2 bedroom apartments

After all is said and done and I put my PM.C.V aside I’m cash flowing just about 300 per door.

After talking with everyone here I’m going to do another appraisal. I’ve came this far. To walk away now...gotta see it through.