All Forum Posts by: Jacob Hince

@Theresa Harris Buyer wants to utilize no money down option that VA loan offers. I've debated the renting consideration, but it's a large amount of capital I wanted back. I know I can leverage it, but we shall see. Thank you so much for the input

FYI, one last note, I originally listed this property at 209,900 & reduced it down to 199,900. At that point, I wanted to try a marketing strategy & reduced the listing price to $150,000 citing highest and best offers due within 3 weeks. (I gave a specific date) The thought behind doing this was to spur a large amount of attention and somewhat frenzy to the property with many showings, which it did. Of course I received numerous low ball offers, I did accept the 185k offer with me paying closing costs. Only then did the VA appraiser come out and slap me in the face with a 150k appraisal. We're now in limbo.

@Theresa Harris I spoke with the buyer's lender & it sounds like there's nothing that can be done. A 2nd appraisal cannot be completed through them, as it's against lending regulations, something @Don Petrasek touched on. (Thank you Don) Lender stated I could send in my own comps. I sent them the appraisal I completed and the VA appraiser basically tore it to shreds as if someone was challenging his authority. Aka came up with every reasoning that sounded halfway decent using big words with 3+ syllables. Spose I could take the chance on hiring another appraiser that does VA, keep them out of the loop, and see what they come up with in hopes that's it's much closer to the sale price. Otherwise sounds like I'll be taking @Russell Brazil's advice, relist and stay away from VA buyers. (Thank you for your input Sir) 

Still considering BRRR.

If anyone has any free time and wants to run comps on the home, the address is 2207 Burlington St, Ottawa, IL 61350. Can be seen on Zillow. I'll be diving into that shortly to try to come up with some for a Tidewater Initiative case. (Lender is letting me have time to find comps.) 

@Theresa Harris I forwarded my first appraisal that came to 198k to the lending bank the buyer is utilizing, but seems the VA appraisal has a steadfast position over lender making changes. My plan is to call the lender/buyer's loan officer shortly & review options. I just have an extremely difficult time comprehending 150k when the actual foreclosure value (not purchase price) was 150k with a completely outdated & run down interior. The ole brown carpet, brown paneling, glittery popcorn ceiling theme.

@Anthony W. Hey man! Thanks so much for the reply & input. I've considered the BRRR strategy, but with my current properties, I was wanting to offload them all, relinquish my capital back, restructure, & move forward with new flips & 10-15 unit apartment buildings. I'll definitely dive into BRRR more & see what comes of it. Maybe this is the opportune moment. Thanks again!

Hey everyone! First & foremost I'd like to thank BiggerPockets & all the members on this site for the plethora of knowledge & wisdom I've dove into the past couple years & utilized in my real estate endeavors. So thank you!

Here is kind of a brief rundown of the current situation: I flipped a home recently in a nice neighborhood in Ottawa, IL. Upon nearing completion, I had it appraised since I was kind of sweating about the value of the home & let others get into my head about list price/value of property. (Friends, neighbors, etc that have not been in the real estate market) It appraised out for 198k which I thought was fantastic, so I listed the home for 199,900. Eventually I found a buyer & had it under contract for 185k with me paying closing costs. The buyer is utilizing a VA loan, therefore the inspection & appraisal were completed by a VA appraiser. It was to my surprise that the appraisal came back at 150k which in my mind is astounding/borderline incompetent. Now I'm kind of in limbo trying to figure out what to do. I've spoken with other successful real estate investors in the area/brokerage owners & they all say that particular appraiser is a "power freak that loves killing deals". I've also spoken to a mortgage broker friend that called the VA association and they state that VA appraisal is attached to that property for 6 months minimum. I've yet to call the buyer's lender to plead my case or fill out any "Tidewater Initiative" paperwork.

Please help! Selling at 150k would net me a sizeable loss. 

 Haha I've been stalkin' the site for a while! Thank you man! Hope all is well

Fantastic read! Thank you for the post