All Forum Posts by: Scott Miller

Overstating cash flow and understating expenses are the two common tactics sellers (and their representation) use to falsely inflate value.

This is not necessarily a show stopper, as you could adapt your offer based upon the new realities being presented.

However, if you decide to proceed, I wouldn't take their word without verification.

I surprised to read that your realtor allowed you to invest in the transaction without doing all the due dilligence first (getting the audited numbers), but like you said, it wasn't their money being spent.

As a banker, I am not particular fond of these circumstances and I attempt to safeguard my clients by doing the "foresenic accounting" in advance.

If you can not reach an accord on a new purchase price, withdraw your offer and take the seller to small claims court to recoup your investment in the inspection fees.

And get a new buyer's agent...

Regards,

Scott Miller

There appears to be a large gap in opinion as to value and before investing any further time/effort in the "what if", you need to figure out the "what is" first.

As your current bank most likely has access to the same information you do (recent comps), there is underlining reason that hasn't been explained that might rationalize the valuation disconnect between the both of you.

Commercial cash out refinances tends to be capped at 75% (although I am aware of programs that go as high as 80%), in which case your bank thinks your property is worth something just south of a million.

Difference of opinion on the comps and cash flow deficiency are just two motivators that might be at play here, but without an complete understanding, this is just speculation.

I advise all my clients to spring for an AVM or an appraisal before selling (so they can determine a fair market listing price) or refinancing (so they can determine how much equity is accessible) so that they have a point of reference to work from, and I advise you do to the same.

Regards,

Scott Miller

With all due respect, your user ID implies that you are professionally obligated to know this information; go ask your branch manager.

Regards,

Scott Miller

Idaho is one of the few states that don't offer an electronic equivalent to a registry of deeds; you will need to physically visit the courthouse to pull the information.

Sorry...

Regards,

Scott Miller

Tell me what county...

Regards,

Scott Miller

You will need either a bridge (if you intend to securtize it by using other assets as collateral) or a blanket (if you intend to purchase a pool of properties) loan.

Fees and rates differ from lender to lender; you can expect:

a. To pay a higher interest rate then you are use to in residential financing.
b. To pay more for closing costs (i.e., appraisals for residential properties run from 300-350 while commercial appraisals can be anywhere from 1500-15000)
c. To have a prepayment penalty.

You also need to mindful when it comes to refinancing or reselling to issues like seasoning, chain of title, the need for sequential closings, etc.

Good luck.

Regards,

Scott Miller

www.whitepages.com

Regards,

Scott Miller

I could be wrong, but highly suspect if the bank is going to entertain a short sale proposal; they are in a 84 LTV position right now, there is no sense of urgency on this one...

Regards,

Scott Miller

Where is it?
Is it an undeveloped parcel of subdivided/buidable?
What is the mid FICO?
DTI?
What LTV is required?

Regards,

Scott Miller

Comic relief aside, there are states that are less liberal with information and require full name/addy to sneak a peek at the mortgage on record.

I am some what of an expert when it comes to deeds; I write them up alot and have made living (in the beginning of my career) in searching through them.

You don't need to leave the comfort of your computer to look things over in TX; here is a list of all the online registry of deeds seperated by county:

County TEL# URL
Bexar 210.335.2273 http://www.countyclerk.bexar.landata.com/default.asp?
Brazoria 979.849.5711 http://www.brazoria.tx.us.landata.com/
Collin 972.548.4134 http://countyclerkrecords.co.collin.tx.us/webinquiry/
Dallas 214.653.7131 http://www.realestate.countyclerk.dallascounty.org/
El Paso 915.546.2074 http://www.co.el-paso.tx.us/clerk/deedsearch.htm
Fort Bend 281.341.8685 http://www.co.fort-bend.tx.us/Admin_of_Justice/County_Clerk/index_info_research.htm
Galveston 409.766.2208 http://207.80.116.33/
Gregg 903.236.8430 http://www.co.gregg.tx.us/hartIAM/
Jefferson 409.835.8475 http://jeffersontxclerk.hartintercivic.com/
Nueces 361.888.0611 http://www.co.nueces.tx.us/countyclerk/records/
Randall 806.468.5505 http://ccopr.randallcounty.org/
Tarrant 817.884.1069 http://ccanthem.co.tarrant.tx.us/
Travis 512.854.9188 http://deed.co.travis.tx.us/

Regards,

Scott Miller