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    Post: Misrepresentation

    Posted by Thomas on 1/31/07

    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

    Posts on this thread, including this one
  • Misrepresentation, 1/31/07, by Thomas.
  • Re: Misrepresentation, 2/06/07, by Inland Empire Attorney.

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