All Forum Posts by: Kevin Larson

@John Sledge @Evan Polaski @Patrick Britton @David Robinson @Russell Brazil

Thank you for the detailed responses.  All of you provided some great insight to my dilemma with the appraisal and refi.  As I mentioned I did the challenge, provided documentation of all the upgrades I performed, a copy of my previous appraisal, comps, and wrote a detailed challenge.  In the end the lender was not willing to work with me and stated that I needed to reapply in 30 days and that if I get the same appraiser I can request a new appraiser.  In regards to the $650 lender fee they maybe able to credit me some of the lender fees on the new refi.  At this point I plan to find a new lender for the property in Indianapolis and on the next appraisal provide all the same information and current comps for the appraiser. I will plan to have my realtor meet the appraiser before hand as well.  It is a shame that appraisers have so much power over a loan even when they are way off basis.  Thank you again for all your suggestions and wishing you a Happy New Year.

I completed a Brrr earlier this year. When I refinanced the property to pay back my private money lender the appraisal came it at $105k. My projections and comparables in the neighborhood supported an appraisal at $115-120k. The loan I took was fixed for 10 years at 5.35% with an ARM after 10 years at 75% LTV.

After 7-8 months of property values increasing and more comparables to support my $120k value I decided to refinance again to get into a fixed 30 yr with a 4.8% interest rate and to pull some equity out of the property.  I paid the lender a fee of $650 for the loan.  The appraisal came back at a ridiculous $60k value.  I did a rebuttal providing a full punch list of all the improvements to the property, comps that my realtor ran that support my $120k value.  The lender came back with a change to the appraisal that now states $85k.

To the savy investors out there and Brrr experts, if you were in my position how would you proceed?

Would you start over with a new lender and try to get your $650 lender fee back?

Have a strategy that makes sense to continue with the current loan?

Stop the loan and wait to see what happens with the market in the future.

Thank you in advance to the BP community for your reply and advice.

Best regards

@Nathan Gesner and @Daryl Luc thank you for taking the time to reply to my post and your advice.  To answer you questions Luc, the contractor was referred to me by my realtor.  He unfortunately has gone underwater on all the projects not just mine, the realtor has had positive results with him in the past, but for unknown reasons unable to perform recently.  I had contacted other investors who worked with him all had positive referrals, I looked him up on better business bureau, has no negative reviews or reports. 

I was able to resolve the situation by agreeing to terminate the contract with no further payment to be paid.  I am now using my property manager who is also a licensed contractor to finish up all the loose ends.  Not ideal on how long it has taken to finish this project and holding costs, but ended with an amicable resolution and will hopefully have the project wrapped in the next couple of weeks.

Thanks again for your replies and best regards to both of you.

To get to the point of my question, and not get too caught up in the details I wanted to get some advice on the best way to fire a contractor.  The contractor I hired to rehab my out of state property is two months past the contracted end date and is not going to be done anytime soon. The contractor is full of excuses, has ran out of money and mis managed this project.  I am not paying the contractor the final Installment for this exact purpose. I now have to go find another contractor to finish the job and pay them. If I can get some advice from fellow investors that have experienced similar problems with their contractor and on how to notify the original contractor of a work stop notice without the original contractor putting a lien on my property I would appreciate it.   I now have to go find a new contractor to finish the job and will pay them from the amount that I’ve held back from the original contractor. The experience I have had with this contractor has turned into the poster child of investors fears of working with a contractor.  Thank you in advance for your replies and advice!

Thanks @Dave DeMarinis I will definitely give Brandon a call.

Thank you for the referrals @Michael Plaks I will look into them.  @Katie L. If I can't connect with a CPA locally I will get ahold of you for your contacts in San Diego.  Thank you!

I am located in California and have investment properties located in the midwest.  Until recently I have had a simple W2 and was able to file taxes thru Turbo Tax.  I have started to outgrow Turbo Tax and as I grow my portfolio of rental properties I am in search of a CPA that will not only help maximize my return but also give strategic advice in my investing to help maximize my return.  Any referalls from my fellow investors would be greatly appreciated.  Happy investing!

Looking forward to attending this event.  Just joined your you tube channel.

Thank you everyone for your input.  You have helped me work thru what will be best in selecting the right terms of this loan. @Jonathan West @Jay Helms@Account Closed

I just had an offer accepted on two duplexes.  This is my first purchase.  I am now talking with a mortgage broker who is presenting me several different loan packages. I am putting 25% down each duplex, looking at a 30 year fixed.  I would prefer to try and cash flow as much as I can on these properties.  Is it better to spend money on points ( the way I understand it a higher closing price ) to get a lower interest rate say 4.75%?  Or should I take a a higher interest rate and pay less in closing costs?

Ex:

4.75% P&I - $245  Points cost $1172

5.00% P&I - $252  Points cost $703

5.25% P&I - $259  Ponts cost  $176

Thank you for your advice and time in advance.