All Forum Posts by: Marcus Holloway

@Nick Belsky That’s what I was worried about. As an investor and a former realtor, I’ve never seen an appraisal take more than 4 days. It’s so hard for me to believe an appraisal report could take this long. Guess I’ll have to suck it up.

Hey BP,

I'm in the appraisal period for our 2nd BRRRR deal in Indianapolis. Obviously the market is crazy. I'm using a private lender that hired an appraiser from an appraisal management company.

The appraiser visited the home over 2 weeks ago and we still haven't received our appraisal report. It's a SFH that's tenant occupied.

They’re claiming they had difficulty verifying rent prices for the area. I’ve complained and they’ve promised to have our inspection report by EOD on three different occasions.

I’m frustrated because I need to close this refi to pay off high interest debt we used to rehab the property. Hold costs our killing our cash flow.

Indy investors, are you also having these long delays on appraisals or do I need to hire someone else?

Thanks in advance.

 I'm in the application process for a private lender I met in my local RE group. My rehab is complete and thankfully, I have a signed tenant, but the high interest seller financing that would kill my cashflow if I keep. My last option is to sell it to another investor. We'll see. 

@Shane Blackshear just completed the rehab on our current project and I’m working with a private lender for the first time. My bank who I completed my first brrrr with, flat out told me they’re not doing invest refis at the moment.

@Danika Jeanton I also had a high DTI with my primary residence when I started investing.

To put it simply, I found a property I could afford to pay cash for. Of course that’s easier said than done. I found a property no one wanted that required a total gut; rehabbed it with high interest, hard money then refinanced out of it once the house was rented. It was in the neighborhood I grew up in so local knowledge gave me a lot of confidence. I also was fortunate to have a good general contractor. Again, easier said than done.

That may not work for your situation and area but just thought I’d share.

@Andre M. It went well! The house is currently rented. I was required by the bank to hire a rehab consultant to approve my GC’s work. At first I fought against it to save money but later learned the consultant was well worth the money. Banks don’t like to cut checks to contractors without a “boots on the ground “ person. The purchase price was 78k. The rehab was 45k and the home appraised for 140k after all repairs were done. Just under 20k in forced equity and I have a great tenant, now.

Thank you! I think one of our biggest advantages is that we CARE about the community we're investing. 

@Brad Gresock Thanks! The rehab took about 6 months. Longer than we expected for 1000 sq ft but we basically built a new house. Everything is new except for the the frame and the slab it sits on.

 We bought the house in November, so we held it for about 7 months rehabbing it. We began talking with the lender almost right after the purchase to let him know what our plans were. He never mentioned a 1 year required hold period. We owned the house out right and we didn't have any loans that were attached to the house prior to the cash out mortgage.  My partner and I have other rentals in our personal names and he did say that worked to our benefit in underwriting. 

@Yuse Segura Since it was our first commercial loan, our lender wanted us to have a tenant in place before we applied for the loan. Once the lease was signed and the rehab complete, we applied for the loan. It took us about 45 days to close on the loan after the rehab was completed.