All Forum Posts by: Kelly Arthur

BP Family, I am putting an offer in on a nice 2 family in North Jersey. It's zoned as a 2 family and needs a lot of work but is in an area that gets good rents and a nice neighborhood. Since I'm already doing the work, in my opinion, it makes sense to put in the extra investment to renovate the roomy attic to make it a 1 bedroom or studio. I need to understand what would be required to have it legally zoned as a 3 unit and the non-construction related costs and the process (permits/legal, etc) to make the change. 

@Michael Elfant I met a young lawyer up in North Jersey at a real estate investors training. He seemed to really be on the ball. Check him out. Dan Barli 973-826-7844.

Thanks @Kimberly Webber. Whoop Whoop!!!!

Thanks @Robin Boyer. Looking forward to getting real familiar with Cash flow!!!

Thanks @Patrick Liska!!!

Thanks @Peter Mckernan. I knew I would close but didn't know when.  The closing was pushed back 3 times due to their lack of control of the situation.  At that point, we demanded they waive rate locks (3 of them) and all costs related to the appraisal. Customer Services Escalation team was also involved.  At closing, the title company worked through the banks errors in the CD.  It was crazy!!! 

This one toughened me up for the future ones.  Bring it on, hahahahah!!!!!

Well @Darren Sager you know how it is with the first one. Analysis paralysis and then there was also a change in direction. But after lots of time on BP (forums, podcasts, blog, webinars, meetups...) I knew I was ready. 

I bought a 3 family in the Valley Arts neighborhood of West Orange.  The seller was an absentee owner with an absentee property manager, however, the property was very well maintained with tenants that keep it immaculate.  The agent took me to see it in March and we immediately submitted an offer which they accepted once I came up a few thousand.

My lender who shall remain nameless (WF) hired an appraiser that try to sabotage the deal from the very beginning. He demanded that certain repairs get done before closing and each time he came out to inspect the work he either would not approve the completed work and added additional items. YES, I did say APPRAISER not home inspector. The lender would not override his appraisals.  He came out 4 different times but after the 3rd, my lawyer got involved. Anyway, with the help of a great lawyer, contractor and both the buyers agent and the sellers agent we got it done even when WF's closing disclosure had a math error that we discovered at the closing table.  What a mess but it's over and it's  on to the next!!!!!!

Yesterday, June 9th, I closed on a 3-unit multi-family. The bank gave me a hard time throughout the transaction especially this last week leading up to the close. It even got a little hairy during the close and it almost didn't happen but my team and I were very resourceful throughout the process. So now I know the next purchase will be a breeze!!!!

@Frank Chin

The answer to that is a big fat NO, which makes this seem even more like harassment and knit picking.  On top of these minor repairs which are now becoming major ones, the seller had to have a tank removed and do remediation.  He has put over $15K into this deal to close.  He's not doing another thing.  I hear what you're saying about the escrow but the repairs he is asking for are knit picking, for instance, the entry stairs have a crack on 2 of the 3 steps in the planks (brick steps with cement plank (caps)).  A mason came and repointed the brick and repaired the cracks.  The cracks were minor and near the side edge of the steps, out of the way from the traffic area of the step.  The appraiser wants the planks replaced. You would almost need to redo the steps to do that.  I had another mason come through to assess the repair that was done and condition and he said it was well done and the stairs are in good condition.

First off, avoid Wells Fargo at all costs (but you probably already know that)!!! I'm in the process of closing on a multi-family buy and hold. It's a solid property in a very good area in Essex County, NJ. Wells Fargo sends out an appraiser in March (this was right after a big snow storm, this point is helpful later) and he indicates in his report that the appraisal and closing of the loan is conditional upon certain repairs be completed before the closing. He provides a very vague description of the repairs that are needed. Since this is a 3rd party and not Wells Fargo, they need to go through an intermediary to contact appraiser for details. This takes over a week and he still doesn't provide sufficient details.

The seller makes the repairs (based on our interpretation of appraisers list) and the appraiser comes back out to re-inspect sometime in early in mid-April (closing is April 20th).  He doesn't approve the repairs and adds additional items.  Initially, he indicated that the masonry around a bilco door needed to be repaired. When he came back to re-inspect, he added in the whole walkway around the bilco door on the side of the house. Siting he could not see this when the snow was on the ground. He also added a repair to an area of siding.

At this point me, the seller, agents, lawyers are pissed off and I have submitted complaints to Wells Fargo's Customer Service Escalation team and had those complaints escalated. They come back and said they're sorry and embarrassed but they have to go with the appraiser. Let's keep in mind that this is not an FHA loan, I have put down 25%, I have my primary home loan with them for years, my credit score is pristine and now my rate lock has expired. I get a new rate lock (charged $590) and get the repairs done. Do you know this (i'm holding my tongue) "appraiser" comes out for the 3rd time and tells us that we now have to repair the whole patio which is near the bilco door and walkway and replace the front entry stairs.

At this point I'm LIVID and ready to drop this bank. I call them up and GO OFF!!!! They waive the rate lock and refund the appraisal but I tell  them to go back to the appraiser and get me 1.)a  detailed list with specific area of item needing repair, 2.) what  repaired is needed and 3.) what is acceptable remedy for the repair so that when appraiser comes back out, he can only inspect that specific repair.  Appraiser won't get back to us.

Oh by the way, the loan processor calls me to apologize and tells me that these 3rd party appraisers get paid each time they come out so it is in their best interest to keep the repair list vague so there is some leeway to add additional items.

Is this harassment? Has anyone dealt with this? Is there any recourse action I can take? Are there any policies around this?

Signed,

"Done with Wells Fargo"