All Forum Posts by: Marc Lyman

We did give them the income and cost approach but they got stuck on the lack of current comps. Might have caught a break though. Found out that a duplex is closing today and we can use that as a comp to hopefully appease the bank.

In this case the appraisaed value was where it needed to be usnig 3 methods, comps, income and cost approach. The bank only seemed to care about the comp approach (even though they ask for all 3). Not much we can do if there are no other comps in the area. I wish they would realize that there are no recent sales because people hold on to these units because they are a good investment!

Thanks Wayne,
I'm dealing with a mortgage broker backed by an investor (bank), in this case Chase. They are now submitting to another bank for approval in hopes of more lenient requirements. You would think with 25% down they would be at bit more at ease but nothing is for sure these days.

I was supposed to close on a triplex tomorrow but just found out that the secondary review of the appraisal by the bank was turned down. They didn’t like the appraisal because there were no mulit-family comps in the area this year, only last year. Not sure how to get them more comps if none exist. Anyone ever run into this before and have a creative way to convince the bank the appraisal is accurate?

I understand the legal reasons that Karin brings up but there has to be more information that landlords can share with each other without being scared of a lawsuit. Mike, I wish more people I talked to were honest like you! When people call me for a reference I don’t get into personal details but have no problem telling them if the rent was paid on time or if they did damage to the unit. I guess no one is required to give any information if they don’t want to but I’m still looking for any ideas to pry more details out of a person when I get that tight lipped response.

Often when I’m checking references on a prospective tenant the old landlord is very tight lipped about giving any information stating legal reasons. I seem to get “I can only tell you whether or not I would rent to this person againâ€. What are some good questions that can be asked and answered legally? Seems like they should be able to state if the person paid rent on time or did any damage to the unit.
Any suggestions would be appreciated.

Sounds like I need to just record it as rental income at the time I receive it, and just record what unit it is for. Kind of messes up the books when double rent is shown for that month and none when it is applied the last month but it all comes out in the wash!

I collect last month’s rent and security deposit when a new tenant moves in. How do most of you account for the receipt of this money? Right now I create a separate account in Quick Books for the deposit of each unit and list it as a current liability. Then when the tenant moves out if repairs are needed I transfer the needed $ to the repairs & maintenance account and refund the difference. Should last months rent be handled the same way? Keep it as a current liability then transfer it to rental income the month it is actually being used?
Thanks for your thoughts.

The appraisal came in at $130 I offered $112. They denied the contract saying they need to be closer to $130 (without saying how close of corse). I've left that one behind and just signed another contract on a much nicer property.

I’ve tried to get the listing agent (the only one with access to the bank processor) to let me talk to the bank but he is hesitant until we hear back from this offer. He says if that doesn’t go thru then he would be happy to let me talk to them. His reasoning is as Tracy says she has hundreds of files on her desk and is always irritated when he talks to her. Unfortunately I’m in Colorado and the property is in Florida so I don’t have many chances to meet onsite with them. I have sent emails of local articles reinforcing the continual downturn in the market but not sure if that is helping. I think I’ll wait to hear back from this latest offer and if I can’t get direct contact with the bank move on to another property.
Besides a CMA any other negotiating options out there?