All Forum Posts by: Michael Sarrail

Interesting to say the least

Ignore those pesky appraisals and sold comps? Why post a response when you didn't read the question?

As stated in the original post.

Buying TK and using financing, the lender requires an appraisal. If the appraisal is higher then the selling price would that be evidence that the property is at least at market value if not under ... even if only 5%?

How much weight can one give to an appraisal made during the purchase process? 

I did leave out checking sold comps specifically, but sold comps are included in the appraisal ... and of course you should be checking comparable sold properties on your own for due diligence.

By the way, CAP rate, CoC, Pro Forma ... never mentioned. I was specifically asking about appraisals and how much weight should be given to appraisals.

Can of worms being opened? Yes, I know ... sorry. But I do have what I believe to be a legitimate question and hope to get some honest feedback.

Now, I know there are lower cost options on buying rental properties. You can buy distressed, rehab then rent. You can find an undervalued property. You can PM yourself to avoid the additional cost inherent in buying TK. Lets say those are off the table because you are starting out and needing to invest in areas outside your local market.

Getting past those options, and others I missed, I have the following question. I read many posters saying that turnkey properties are, in general, overpriced. Some say that they are over market value. I am sure this can be the case at times.

Buying TK and using financing, the lender requires an appraisal. If the appraisal is higher then the selling price would that be evidence that the property is at least at market value if not under ... even if only 5%?

How much weight can one give to an appraisal made during the purchase process? 

@Joe Koppel ... what did you do?

@Lee Ripma be sure to run your own numbers and factor in appropriate holdbacks. If you will use USREEBPM for your property management be sure you read and understand the entire contract.

Although the properties I have purchased through USREEB so far have rented at rates higher than promised and the properties have appraised higher than purchase price you should always run your own numbers that you obtain through independent third parties on each and every transaction you do. No matter who you purchase from. 

Run your numbers assuming worse case ... run rents on the low side. Run holdbacks high. If the numbers come out acceptable to you like this you should be happy.

Brian, I have read the PDF. Sent back an email with a few follow up questions. Hope to hear from you soon.

Sure would be great to hear the final outcome. Maybe even some pictures of the before/after.

Do any of you know a lender that allows a mortgage to be moved into an LLC after closing? I own 2 properties but the lender will enforce the due on sale clause.

If there are no lenders that allow the move into an LLC would buying my next property cash to start the LLC make sense? If so, how long does it take for the LLC to mature enough that I would be able to get mortgages it directly. 

If anyone has other suggestions I am open to listen. My end game is protection of assets. 

Thanks in advance 
Mike

@Trude Roberts is this property still available? [email protected] 

@Trude Roberts is this property still available? I have sent emails with questions but no response to questions.