All Forum Posts by: Jayson H.

@Chris Mason I was expecting all the standard disclosures that I've dealt with during my past personal purchase transactions. This loan will be in the name of my business and I assumed the disclosure requirements are different on the commercial note? I assume there will be some disclosures for me to sign at closing, but at this point, I've only been asked to complete an application, personal financial statement, questionnaire about the property, and to sign the loan commitment letter.

My attorney will review the closing docs from the CU and will alert me if anything appears wrong.

Thanks, @Bill Gulley! Disclosures? Ha, haven't gotten any! The closing costs to the CU are reasonable, IMO (1% origination, $450 "appraisal," and $18 flood cert.)

I'm certainly going to be looking for another lender. I'm hoping to follow the brrrr model and a fire sale appraisal isn't going to fly.

I very much appreciate all the input!

Thanks @Sean Cole and @Chris Mason! I completely agree. I'm going to give my LO some time, but if they don't produce it, I'm going to talk with my attorney.

Thankfully I'm using equity from another property that I own F&C to satisfy the 25% down payment requirement. If I was making the DP OOP, I'd be on the hook for thousands more than I anticipated and would most likely have to pull the deal and loose my deposit.

I agree, it absolutely does @Joe Splitrock! The 2016 tax assessment, while also inaccurate, is $182k. The immediately adjacent property (same floorplan, age, condition, size and shape lot, road frontage, etc. sold for $149k in May 2015.

The LO did disclose the comp's. Two (of three) are located in an adjacent county that is considerably less desirable than that of the subject property.

The LO mentioned a full appraisal is an option, but the price is $1k IIRC.

I'm under contract to purchase a SFR for $135k. I'd conservatively estimate FMV at $145k to $150k. The local credit union I'm working with to finance the deal has performed a $450 "real estate evaluation" (i.e. off-site, desk appraisal) on the property and arrived at a value of $110k.

I questioned my LO about the appraised value and they admitted the scope of the appraisal was to formulate a "liquidation value," not a FMV. WHAT?!? Furthermore, when I requested a copy of the evaluation I was told the evaluation is proprietary property... WHAT?!?

I reminded the CU that Regulation B §1002.14 applies in this case and now my LO is requesting permission to release the evaluation to me.

That said, I've never heard of a "liquidation value" appraisal being used for a purchase money transaction. Is this common?

I'm thinking this is a convenient way for the CU to limit their exposure, at my equity expense! If this was a BRRRR, I'd be in trouble.

Will your LLC own any property? If so, I'd highly advise hiring an attorney to handle the creation of the LLC and Operating Statement.

If you plan to purchase property in the name of the LLC, you're likely to be asked to provide a copy of the operating statement to prove you're authorized to conduct business for the LLC.

Welcome to BP, @Travis Shaw!