Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Followed Discussions Followed Categories Followed People Followed Locations
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 2 months ago on . Most recent reply

User Stats

41
Posts
6
Votes
Jeremy I.
  • Investor
  • Humble, TX
6
Votes |
41
Posts

Refinance Challenge on Buy and Hold Purchased in 2022

Jeremy I.
  • Investor
  • Humble, TX
Posted

I bought a rental in 2022 through owner financing and used the realtors CMA to value the house. The note is due in a month and I've been trying to refinance the house and the appraisal came back approximately $150,000 lower than the purchase price of the house, which is causing me to have to bring approximately $65,000 to close. I'm trying to determine what my options are, and how to proceed. I've thought about hiring a lawyer to renegotiate with the prior owner, approaching a wholesaler, or allowing the house to go into foreclosure. All bad options. Any help will be greatly appreciated.

Most Popular Reply

User Stats

1,763
Posts
1,213
Votes
Jay Hurst
  • Lender
  • Dallas, TX
1,213
Votes |
1,763
Posts
Jay Hurst
  • Lender
  • Dallas, TX
Replied
Quote from @Jeremy I.:

I bought a rental in 2022 through owner financing and used the realtors CMA to value the house. The note is due in a month and I've been trying to refinance the house and the appraisal came back approximately $150,000 lower than the purchase price of the house, which is causing me to have to bring approximately $65,000 to close. I'm trying to determine what my options are, and how to proceed. I've thought about hiring a lawyer to renegotiate with the prior owner, approaching a wholesaler, or allowing the house to go into foreclosure. All bad options. Any help will be greatly appreciated.


I see in your profile that you are seeking investors to avoid hard money lenders. I am not not trying to pile on here BUT if you had a lender on this trasnaction you would likely not be in this place. Properties in the price range we are likely talking about have not lost 20-40% of value. The appraisal that a lender would have required you to get when you purchased when have likely shown that the interested party CMA was garbage. Sure, lenders charge for their services but they also look out for you. A bad deal for you is a bad deal for the lender too.

  • Jay Hurst
business profile image
Hurst Real Estate, INC
4.9 stars
83 Reviews

Loading replies...