All Forum Posts by: Nicholas Weckstein

@Steve Morris @Dave Rav @Alexander V. @Russell Brazil Thanks so much guys. Pride is a funny thing. I do believe you guys are correct. Maybe I should just shut up and eat the cost of a new appraisal. Right now I have the agent finding the most recent inspection from the township, also getting me insurance statements and ive previously called and spoke with the sewer authority ( they confirm, 3 units). Figured if I pull all this together, coupled with 3 leases...How could you deny that? 

@Dave Rav you know I totally agree he is probably trying to save face. I even called the number that was put down for him on the report and its OUT OF SERVICE? I just called the company, waiting to hear back. 

one of the comps he pulled  (on a duplex) last sold in 1999. I find that largely hard to believe as I know the area and its a huge multi family style market. 

The property is good, healthy cash flow after all expenses and putting aside CapEx/vacancy/Management. Good area too.

just don't want to get screwed but I've put in time and effort. so maybe paying another 500 to a different appraisal company is just the cost of doing business.

@Steve Morris True, for me it boils down to the 3 unit being 100% legal and within compliance for code enforcement and occupancy. Then just thinking about a future exit strategy. If I choose to ignore that, buy it anyway and pay the difference...will I run into issues if I go to sell. 

I guess it isn't over paying if its a bad appraisal...I just don't know what's right. I dont want to feel like I'm buying a 2 unit with a "bonus 3rd unit" that won't be considered in its valuation by a bank. 

@Russell Brazil valid point, I guess its a catch 22 for me now. Appraiser is saying he won't consider it livable space. Even thought its occupied with a lease. I guess I'm just concerned that if I went to sell, if that happens again id face the same issue,  Just never had this happen so I'm kind of processing what to do from here. I dont really want to pay the difference, but good point..if it is a 3 unit...then it should be worth more. Im just worried about it. Instinct says dont pay more than its worth, but if the appraisal is wrong.....really good point. 

We are less than 30 days from closing, I dont even know if I can make the switch quick enough to a new lender. 

@Steve Morris well I just mean that, of coarse I could still do the deal...id just have to pay the difference. To me that's a horrible idea. Not to mention now I'm worried if down the line when/if I go to sell, a future buyer may have the same issue. Unless this was just a really bad inspector. Which it seems to be. On his income approach he got the rents wrong too lol. Owner isn't willing to drop the price, im not willing to take an equity loss on purchase. The bank doesn't seem to give a crap. 

@Dave Rav Appreciate that info! Im actually going to be giving them a call this afternoon, I'm just trying to not be so pissed off about it right now..want to make sure I'm as nice as possible on the phone lol. But apparently he also went to the property a week before and "couldn't complete the appraisal" then goes back. and screws it up. Will most certainly be making some calls about this. Have to say I'm not happy with the bank either..they have that "oh well too bad" attitude. What happened to taking care of the customer? How about, wow...the appraiser you paid for but that WE hired...did a crap job, we will get another one, on us. I dont know if I'm being stubborn but its like adding insult to injury now to expect me to pay for another one.  

if this falls through. I'm pulling all my liquid back together and buying cash deals only, off market, flips, BRRRR's.

@Steve Morris Yup, fighting with the bank all morning. They said I have to pay for another appraisal if I dont agree with that one, and or find comps to show its worth. So now that's what ill be doing...still trying to wrap my head around how you can completely ignore the 3rd unit on the report though. Their is proper egress, as far as I can tell...this building wasn't turned into a 3 unit any time recently. 

but I may have to cancel the contract because I absolutely won't buy above appraised value, that's just bad business. 

this year has kicked my butt! 

@Nicole Heasley Beitenman I see that now, its insane they can do stuff like that. Yes hoping the bank is okay with everything. we will see! to many deals fell through this year 

@Alexander V. That is EXACTLY what me and the agent deducted as well.

He had to have messed up...it was all over everything that it’s a 3 unit.

Thank you for the well wishes...the bank seems annoyed with the company as well. Think he just wanted to save face. I have a conference with them tomorrow, thinking we should be okay as long as we get a proper appraisal. I’m actually thinking it may come in high. 124k on a 2 unit. Purchase price 140k for 3 units. 16k difference. Would hope the other unit would add at a minimum 25k.

Im pretty blind sided by this.

3 unit under contract at 140k, scheduled to close beginning of September. Inspection went well, bank has committed to funding it, title company is ready and good to go. Insurance in place.

Appraised on Friday, we get the results back SUPER quick. Bank gets it to me today (so 3/4 days). Underwritten and all...

I'm SHOCKED by the low appraisal at 124k...I begin to read through it The appraiser completely left out the 3rd unit, marked it down as a 2 unit. EVEN GOT THE RENT WRONG ON ONE OF THE 2 UNITS.

so I call the bank..I'm like uh hello...EVERYONE is aware this is a 3 unit. how does this happen? how does even the bank miss this...how did the appraiser miss this?!

The sellers agent spoke with the appraiser and the appraiser refuses to change the report because the 3rd unit is in the basement...? WHAT? It is a legal 3 unit...occupied...zoned...I told the bank that we need a new appraisal ( im not paying for this one as I already paid for the screw up)

Anyone ever experience this? They won't consider an apartment if its basement level? Thats news to me

@Ray Schumacher thanks for the reply.

No he was not, just given the last min need now, figured I’d add an incentive for some one to get out quickly.

Have a building that im about to go under contract with and had it set up to walk with a contractor. Contractor stopped answering and my old one is no where to be found. Luzerne County PA. any referrals would be appreciated