Posted by Thomas on 1/31/07

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In 2004 we purchased a 6 unit townhouse apartment townhouse
building in South West Virginia. We though we took all the
appropriate measure to ensure that the building was a safe
investment.I asked for the financials to make sure they
were taken to our accountant to get his professional
opinion, he said, everything looked good. Thought it would
be a good safe investment. The seller had the building on
the market for $210,000.I told the the loan handler that I
was going to have an appraisal done on the building. She
told me it would not be appropreiate, and a conflict of
interest since the bank would be handling the mortgage for
me to hire the appraiser. Besides she said,why put out one
cent more, let the bank pick this one up.I don't think this
Appraiser ever set foot on the property in or outside of
it.We also had an inspector which came highly recommend by
the sellers agent do an inspection.I am still wondering
Who's property was he inspecting? He listed all of the
things he just glanced over,other then roaches hanging from
the ceiling inone of the apts, and he failed to mention a
major sewage line break. Neither were disclosed to us. The
agent and the sellor failed to also mention that 2 of the
tenants were behind in the rent (one) three months which
had to be evictedd that next week by us. Her apt was so
roach infested the place had to almost be gutted
completely. The other tenant was two month behind and lived
like a pig. I have seen pigs live better then she did.She
managed to hold on for a while but was eventually evicted
also. There are many safety procautions that need to be
considered when purchaseing a property inhabited with dead
beat tenants from sellers.What can we look for in
financials from sellers to give us a clue that they have
been doctored their(Tax Statement) to make a place seem
more valuable then they are. We purchased the building for
the 210,000. with 20% down. We have invested over 100,000.
We have had 3 market analysis done with the all the major
rehabbing. The building has be given a new market value of
$157,000. So what was the true value before rehabbing
$90,000.How can we find out if at all. On top of this whole
thing that stinks like mis-representation & non disclosure.
The appraiser sent me the bill just last for the appraisal
for 600.00. I contacted the loan manager at the bank,she
said she never said,that. I had no idea that the bank
receives the appraisal. that in order to receive a copy you
must request it.I didn't realize we didn't have one until I
received the market analysis reports, and I went to get the
appraissal. Can anybody out their clue me in,because
obviously I am clueless as to the decline in value after a
major rehabbing project. Thank you

Re: Misrepresentation, 2/06/07, by Inland Empire Attorney.

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