Comps Low Due to Wholesale Deals

[Account Closed]

Since the beginning of the year, I have purchased several properties in a neighborhood from a wholesaler, and I personally know of a second investor who has also purchased several in the same neighborhood from wholesalers (between us, we have 8 in the neighborhood of about 50 properties). When the sale gets recorded, the "sale price" is what the wholesaler and the owner agreed upon, and doesn't include the wholesaler's assignor fee (the price I actually pay). The lower "sale price" is what is being reflected on zillow/MLS sites, thus we are bringing down our own comps.

I wouldn't care, except I would like to refi and pull the cash out of them and I'm afraid the properties will not appraise high enough because our comps are artificially low.  There have been two "on market" sales that are substantially higher than our properties, so that helps, but I don't think the appraiser will use only 2 out of 10 sales in the neighborhood in the past 6 months. 

All I can think of so far is to do a rebuttal on the appraisal and submit my HUD statements, but I don't feel comfortable asking the other investor for their HUDs. Has anyone experienced this, and if so, how do you get an accurate appraisal?

Thanks! :)

[Jonathan Greene]

The closing is with the end buyer and not with you as the wholesaler so I am not sure why the recorded amount is your buy price. Your buy price shouldn't even be recorded as it was only put under contract at that amount, but the end contract was for another amount. Taken as a line item, the wholesale fee wouldn't be an appraisable item, but the final sales price is still the final sales price on the transaction.

When we give a late credit on a transaction, the price stays the higher amount and a credit goes on the HUD.