All Forum Posts by: Michael Liddicoat

@Basit Siddiqi

I'm still learning some of these investment tools and strategies so any miscommunication was on my end.  Thank you for clarifying.  

@Basit Siddiqi

The sellers are in their 50's and looking to unload all their properties.  They have a listing agent involved who will probably try to kill the idea of seller finance, but that's an assumption on my part.

I didn't know if creating an LLC with the sellers and buyer as members, bringing the assets under the umbrella and then allowing to the buyer to buy the sellers out would work. This would mean that there is no history of the LLC that the buyer is unaware of.

I'm probably making many assumptions here about the liability exposure and relationship that the buyer and seller would want to have.

I'm a realtor who helps investors to purchase income properties.  One of my clients is looking to purchase the entire portfolio (51 doors) from a seller.  The seller is looking to avoid paying a large chunk in taxes.  

I have limited knowledge of buying a portfolio.  Are there strategies that would be mutually beneficial to both sides other than a straight purchase and sale?

Could the seller put the assets into an LLC and then allow the buyer to purchase the LLC over an X year period work? I'd like to be more knowledgeable about creative strategies and appreciate any feedback.

@Enrique Jevons is Pellego helping people in Centralia?

@David Christensen, you should meet up with @Chuck Sumner.  He's ready to roll.

@Joe Splitrock after the feedback from everyone on this thread, I've been digging in.  It looks like the cost appraisal was given to the sellers because they purchased the home directly from their parents for less than market value.  This is a guess on my part:  since the bank knew that the home was going to have instant equity, they ordered the cost appraisl to make sure adequate insurance was purchased.

Also agree with everyone on this thread that if something doesn't shake loose or new info come to the table, then it's better to walk away.

Sellers purchased the homes from their parents before they passed away.  The purchase price then was $308k with the cost appraisal showing a value of $425k.  There are 4 families that would receive the funds upon sale.  The $60k difference means $15k less per family.  

My tactic so far has been to point out the difference between cost appraisale and sales appraisal.  The family member I'm speaking to also lives out of state in a much higher cost market.  Based on suggestions from this post, it feels like I should allow the buyer to get a new appraisal to continue negotiations or walk away and let the seller find out on their own.

@Chris Mason, @Denise Evans the seller spoke to the bank about the CMA I provided. The bank is trying to reasure the seller that the appraisal price should be the sales price. I'm struggling to find another way of explaining that the appraisal does not determine the current value. Every appraisal is only a snapshot in time.

Have you had any experience using Virtual Reality to look at homes?  Did you like it?

Hello fellow agents,

Please provide some feedback and assistance. I have a seller that purchased their home from their parents three years ago. They are getting ready to sell and want to use the appraised value from that purchase. Here in lies the problem, the appraisal was done on this 1967 home using a cost appraisal. The CMA I presented shows that the market value is lower by $60k. The bank is standing by the cost appraisal.

I've not had to educate sellers on this issue before. My explanation of how I did the CMA is understood, but they are sticking to the paper they've got from the bank. Have you had to deal with an issue like this? What suggestions or ideas do you have to help this seller realize the home was inappropriately assessed?

Additional info:  Property is located in Central Washington.  The home was built in 1967 in what was an orchard.  The family has sold the land and in the last 7 years new homes have been built on the land.  Half acre parcels are selling for $90,000 and homes are being built starting at $600k in the neighborhood.  Subject property has not received any updates since construction.