Closing this month. First rental property. Norristown, PA

Closing this month. First rental property. Norristown, PA

Norristown, PA · Member since 2015 · 15 posts · 1 vote

After five long months of inspection after inspection, signature after signature... I'm scheduled to close on my first investment property. I have a few questions.

1) I wanted to close (sign the paperwork, specifically) on April 14th and take possession on May 1st. The bank is telling me I can't do that. Why?

2) I got the building inspected by a licensed inspector. Why, then, did the insurance company and the bank need their own inspections done? That's three inspections. Now throw in a mandatory termite inspection (because the one performed by the original inspector wasn't good enough), a contractor walk-through for a repair estimate AND the post-2008 collapse 3rd party appraisal requirement and we're looking at SIX separate events over three months. Why? What can I do to streamline this? Why did this take so long to finish and how can I prevent this from happening in the future? Having six different guys showing up to all conduct their business on the same date isn't exactly a winning strategy. 

Beyond that, if any of you folks are in or around Norristown, feel free to reach out to me.

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Rental Property Investor · Wake Forest, NC · Member since 2016 · 186 posts · 78 votes
10y

First off, congratulations! Second, banks do their own appraisal regardless if you or the seller had their own done. Usually the insurance company will just ask you to forward the appraisal and inspection report. In our case, the insurance company just got in contact with the bank and got it directly from them. I do find it weird you had the same inspection done that many times. i would have just went with a different insurance company. 

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  • Rental Property Investor · Wake Forest, NC · Member since 2016 · 186 posts · 78 votes
    10y

    First off, congratulations! Second, banks do their own appraisal regardless if you or the seller had their own done. Usually the insurance company will just ask you to forward the appraisal and inspection report. In our case, the insurance company just got in contact with the bank and got it directly from them. I do find it weird you had the same inspection done that many times. i would have just went with a different insurance company. 

  • Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 905 votes
    10y

    @Jonathan Schell, congratulations. 

    Only thing you can do to speed it up is purchase via cash, that way you only need 1 inspection, if at all.

    However, depending on whom you are buying from, closing can take 15-30 days, even as a cash buyer. My most recent purchase from HUD took 45 days since they messed up the paperwork.

    Very frustrating, but there will be other "opportunities" to streamline as you embark on this journey.

    Good luck!

  • Collegeville, PA · Member since 2016 · 39 posts · 8 votes
    10y

    @Jonathan Schell congratulations!!  I live in Collegeville and I'm just starting out too. Good luck. 

    @Percy N which Philly suburb are you from?  Have you been investing long? 

    I just joined and look forward to getting to know this community.  

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