All Forum Posts by: Mike Pena

Doing research for a deal in Sioux City, IA. It is duplex in a higher end area. Would like to get some local perspective on the current market in this area? A macro view of the market is fine at this point. Looking for areas to avoid,  Hot/trendy areas,  rents increasing/decreasing overall, other market trends, etc... Any help appreciated. 

@JD Martin  I just don't want the same bad appraiser again and didn't know if that was even an option.  

 Ha. I see what you are saying. I am all about playing by the rules. I would prefer not to be in that gray area unless there is a really good reason supported by strong facts. 

It wasn't in Lee's Summit. I wish it was, would have been more competition.

Maybe I miss spoke. I am wanting to know the process and how it works. Not to commit loan fraud.

I completely understand the conflict of interest.  I don't want an appraiser to just give me the number I want.  They are humans too and can make mistakes.  

Long story but I have had to order a second appraisal before ( both I had no relationship with). The 2nd came in $10k higher. I did a lot of market research and supported my reasoning for requesting a second appraisal.  Neither came in at selling price but one was way off.  I paid for both appraisals got the deal done and saved some money. However, this house was in smaller city just outside of KC.  Not very many appraisers in town. 

@Bill Gulley So if there is an appraiser I would prefer to use (based off prior experience) I don't have much of a choice on a residential loan.  On a commercial loan it would just depend.  If the loan is not on the 2nd market, so an in-house loan, does that change the process for a commercial loans and/or residential?

How do lenders choose the appraisers?  I was told that lenders cannot simply pick whoever they want to now. This was different pre 2008.  Could some mortgage lenders out there weigh in on this process? 

Glad to hear that. Sounds like you have some good opportunities to explore.  If you have any other questions, you know how to find me. Good luck, @Dwyanne June !

MP

The answer to your question is somewhere between 50k and 0.  It depends on the depreciation of the 50k that was capitalized. This is assuming you don't have some additional depreciation from assets/improvements in prior years.

The LLC is going to provide you liability protection. Side note an LLC is not necessarily the best entity to hold assets in. Yes, an LLC is an flow-through entity meaning your share of the income or loss is passed through to your individual return Schedule E on 1040.

If you buy a house in a partnership then you would receive your share of income or loss.  I am not sure if we are answering your questions.