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Denied a load on a multi family home

Victor Callender
Posted Jun 11 2022, 06:23

Three weeks left on closing on a multi family property in the Bronx and we were denied funding due to the fact that we priced our one bedrooms to high $1800 claim the for the Sq footage of 666 it should be priced at $1500. Even after providing comp in the neighborhood of similar units we were still denied. 

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Simon W.
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  • Lehigh Valley PA & New York City
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Simon W.
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Replied Jun 11 2022, 08:20
Quote from @Victor Callender:

Three weeks left on closing on a multi family property in the Bronx and we were denied funding due to the fact that we priced our one bedrooms to high $1800 claim the for the Sq footage of 666 it should be priced at $1500. Even after providing comp in the neighborhood of similar units we were still denied. 


You're talking about the Bronx - $1800 is way too high for 1 bedroom.

Not sure what is your question is here. 

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Replied Jun 11 2022, 08:39

 What part of the Bronx. I live and have worked here for 9+ years and $1800 is very reasonable for a bedroom in most neighborhoods. Lmk if you need connection with a lender that understands the Bronx. 

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Victor Callender
Replied Jun 11 2022, 09:16
Quote from @Andrew Jennings Freerks:

 What part of the Bronx. I live and have worked here for 9+ years and $1800 is very reasonable for a bedroom in most neighborhoods. Lmk if you need connection with a lender that understands the Bronx. 


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Victor Callender
Replied Jun 11 2022, 09:18

Mott Haven, my schedule closing date is June 30 and I don't know if it's enough time to find a new lender.

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Joel Case
  • Rental Property Investor
  • Ocean Springs, MS
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Joel Case
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Replied Jun 11 2022, 09:59
Quote from @Victor Callender:

Mott Haven, my schedule closing date is June 30 and I don't know if it's enough time to find a new lender.


If your current lender denied you, what is your other option? Wouldn't hurt to start working with a new lender that can make the deal work and worst case scenario you have to push out closing a few days. 

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Natalie Schanne
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  • Princeton, NJ
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Natalie Schanne
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Replied Jun 11 2022, 19:09

@Victor Callender - sounds like you ask for an extension and figure it out with a new lender. Keep pushing. You’ve got this.

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Replied Jun 12 2022, 06:44

@Victor Callender If you don't think it's enough time why make a post. I don't think I understand the question either. If you were denied what is the next step for you or are you just telling us you got denied for the sake.

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Victor Callender
Replied Jun 12 2022, 07:35
Quote from @Andrew Jennings Freerks:

 What part of the Bronx. I live and have worked here for 9+ years and $1800 is very reasonable for a bedroom in most neighborhoods. Lmk if you need connection with a lender that understands the Bronx. 

 The question is have you ever heard of anyone being denied of a loan just because the appraiser thinks I should be pricing the units for $1500 instead of my 1800. And when I provide proof the this is what's being ask 1800 + they still wouldn't accept. Credit great, down payment and has good income. Just wanted to see if anyone ever heard of anything like this.

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Scott Mac
  • Austin, TX
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Scott Mac
  • Austin, TX
Replied Jun 12 2022, 07:43

Sq footage = 666

Hmmmmm(???)

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Victor Callender
Replied Jun 12 2022, 07:44
Quote from @Scott Mac:

Sq footage = 666

Hmmmmm(???)


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Victor Callender
Replied Jun 12 2022, 07:47

Yes, the second and 3rd floor, but the 1st floor is larger with parking and backyard access.

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Matthew Crivelli
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Matthew Crivelli
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Replied Jun 12 2022, 07:51
Quote from @Victor Callender:

Mott Haven, my schedule closing date is June 30 and I don't know if it's enough time to find a new lender.


Do you have an appraisal completed that was preformed through an AMC? (Appraisal Management Company)

I don't know the full story but if you have a satisfactory report in hand and have good financials, you should be able to find a lender to close it for you. The big question will be if the terms presented by the new lender are acceptable to you.

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Issac San Miguel
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Issac San Miguel
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Replied Jun 12 2022, 07:58
Quote from @Matthew Crivelli:
Quote from @Victor Callender:

Mott Haven, my schedule closing date is June 30 and I don't know if it's enough time to find a new lender.


Do you have an appraisal completed that was preformed through an AMC? (Appraisal Management Company)

I don't know the full story but if you have a satisfactory report in hand and have good financials, you should be able to find a lender to close it for you. The big question will be if the terms presented by the new lender are acceptable to you.

agreed with this. Your other option is to take it down on a bridge loan, maybe even a fix and flip loan or rehab loan, and then rent it out for the comp prices you know it to be worth. once that is done, you can refi into a dscr with the in place rents. of course, that all depends on whether or not this is owner occ.