All Forum Posts by: Matthew B.

Got an offer on a house, and the buyer is using a VA loan. We had an appraisal done to determine the listing price of the house, and the buyer is offering full price. The buyer's agent mentioned that we may have to reduce the price since VA appraisals normally come in lower than traditional appraisals. Is there any truth to that? I haven't had much experience with VA, but I know that on a flip we did in the past, the USDA appraiser refused to include the swimming pool in the value.

My iPhone camera broke, so I haven't been able to take any pictures. I brought my iPad today so I could update this thread.

As you can see, windows and doors have been replaced, the exterior has been painted, concrete has been fixed, and drywall and knockdown is almost finished.

The tile is being delivered on Wednesday and our tile guy will start installing. We're in the process of painting the interiors, and I've been putting up light fixtures and smoke detectors.

Next big purchase will be cabinetry, countertops, interior doors, and trim.

Let me know what you think!

@Jarrod Weaver

Class of 2013!

I just found out that United Southern Bank will only lend on the purchase price, not ARV or appraised value, so don't waste your time there. I've been banking with them for the past year with the intention of doing some cash-out refi's with them, but I guess I've been wasting my time.

I'm in the process of calling around and looking for another place to move my money. Let me know if you find a good bank.

I asked about the seasoning time, and told him that I've owned most of my properties for more than 12 months. The loan officer would only say that commercial loan decisions are based on overall risk and I would have to go through the application process before he could give me an answer. Why waste my time?

Thanks for the confirmation that this isn't typical. I'm going to find another bank and this time I'll ask about this very issue before moving my money there.

I moved my business banking to a portfolio lender about a year ago. My intentions were to build a relationship with this small, local bank in order to cash-out refinance some properties down the road. Basically what Brandon Turner just posted about on the BP Blog. He called it the BRRRR strategy.

Well, now I'm ready to refi, and I've been talking with the loan officer at the bank. He says they will only lend on either the purchase price or the appraised value, whichever is LESS! I have a property I purchased for $40,000 at auction that is worth over $100,000, but this bank will only lend 70% of $40,000. Obviously, this kills the BRRRR strategy.

Is this typical or do I need to find another portfolio lender and move my money there?

@Adrian Chu

We've had at least one showing per day for the past several weeks resulting in 3 offers. We countered on each of the offers and the buyers were unwilling to negotiate and walked away. The real estate agents are amazed because this is one of the only sub-$200k pool homes in the area.

@Sid Liso

The seller found me through my website. I went back and forth with her via email for almost a year before she decided to sell.

@Jarrod Weaver

Nice to see another Stetson grad and real estate broker on the site! I'm looking for a lender as well. Have you found anyone yet? 

@Travis Hamilton

Right about $10,000 including back property taxes, etc. The tile doesn't look quite as bad now that the maroon carpet is gone and the walls are painted.

Windows and doors have been replaced. Concrete sidewalks and A/C pads have been poured. Exterior is almost done being painted. And drywall should be finished this week.