About February, 2013, a bank approved a $2,000,000 mortgage loan subject to a certain commercial Real Estate Rental property appraising for about $3,100,000. About the same time Farley Grainger of Florida Valuation and Iconic Real Estate Investments both located in Jacksonville Florida won a bid at auction to buy another commercial real estate rental property located across the street and about 300 feet from the subject property which was to be appraised. Granger's property was improved with a 100% vacant 8,800 square foot commercial building that was in need of a rent paying tenant.
Shortly after the auction, Grainger received a bid request to appraise the subject property for a mortgage loan. Not withstanding that Grainger had the appearance of a conflict of interest due to his prospective interest in a commercial rental property located about 300 feet down the street, Grainger submitted a bid to appraise the subject property. Grainger won the bid to appraise the subject property. Later, Grainger was sent a questionnaire which asked Grainger if he had ever been sued. Grainger falsely answered "No". In fact, Grainger had been sued in the past for appraisal negligence.
On March 5, 2013, Grainger formed a limited liability company to be filed with the Florida Department of State. The name of the LLC was the address of the property Grainger was going to acquire from the auction.The managing member of the LLC was Grainger himself.
On March 6, 2013, an engagement letter was addressed to Grainger offering an appraisal assignment of the subject property. On March 7,2013, not withstanding Grainger's appearance of a conflict of interest, Graninger signed the engagement letter. In the said letter, Grainger represented that there was no conflict of interest either "direct, indirect, financial, or otherwise… in the property being appraised."
On March 11, 2013, it was arranged for $4,500 to be paid to Grainger upon completing the appraisal. On March 18, 2013 a deed was executed conveying to Grainger's LLC the property he had won at auction.
On March 19, 2013, Graninger and Edward De Laurier of Florida Valuation meet the owner of the subject property concerning the appraisal of the subject property. After introducing himself, Grainger did not say anything about acquiring an 8,800 square foot building that was only about 300 feet from the subject property. Also Grainger did not say that his LLC's property was totally vacant and therefore Grainger's LLC would be in direct competition for tenants with the subject property that Grainger was appraising. At the meeting, Grainger asked for and received information on the subject property's tenants, rents, lease termination dates, and overall business strategy. Grainger learned from the owner that about $425,000 of the prospective mortgage loan proceeds was going to be used to make certain improvements that would increase the subject property's appeal to prospective tenants. Also, Grainger learned that the prospective loan amount was $2,000,000 subject to the appraisal being done by Grainger being at the least $3,100,000.
At the meeting Grainger was given by the owner a study showing about 18 sales of commercial properties in the subject property's neighborhood. The sales indicated a sales value range of the subject property to about $7,000,000 to $10,000,000. At this point, Grainger did not reveal that another property sales had occurred about 300 feet down the street and that Grainger's LLC was the purchaser. Later, Grainger was told by the owner that a sale was occurring on a close by property down the street that had recently been sold at auction. Grainger was told by the owner that the public records were being checked daily but nothing had yet been recorded revealing the purchase or the price. Grainger was told by the owner that, when the deed was found, Grainger would be sent the information because he possibly could use this sale in his appraisal. Grainger said to the owner that the deed search could stop because Grainger knew the details of the sale because Grainger was a bidder at the auction, Grainger did not say that his LLC was the buyer and that a deed to his LLC had been executed the day before on March 18,2013. The deed search was stopped by the owner of the subject property because of, in my opinion, Grainger's deception.
In April, 2013, Grainger and De Laurier turned in their appraisal.Their appraisal was for $2,100,000 and was signed by Grainger and De Laurier. The appraisal revealed to the owner of the subject property for the first time that Grainger's LLC had ownership in the vacant property down the street which was clearly a potential competitor for tenants with the subject property.
On April 17 and 18, 2013, the owner of the subject property complained about the conflict of interest and about, in its opinion, certain errors and omissions in the appraisal. Not withstanding clear, if not overwhelming, evidence of conflict of interest, errors, and omissions in the appraisal, Grainger and De Laurier refused to increase their appraisal by any amount whatsoever.
On May 21, 2013, based on the appraisal of Grainger and De Laurier, the owner closed a mortgage loan for $1,575,000. This amount was substantially less than the amount necessary to proceed with the improvements that would have increased the subject property appeal to prospective tenants.
On August 15,2013, a disinterested MAI appraiser submitted an appraisal to the owner of the subject property for $8,900,000.
On January 13,2014, another disinterested MAI appraiser submitted to the owner a detailed review of the $8,900,000 appraisal concluding that the $8,900,000 appraisal " is appropriate and reasonable".
It is my opinion that Grainger did not tell the truth or do the right thing. I can not recommend Farley Grainger, Edward De Laurier, Florida Valuation, or Iconic Real Estate Investments.
Farley Grainger Reviews
About February, 2013, a bank approved a $2,000,000 mortgage loan subject to a certain commercial Real Estate Rental property appraising for about $3,100,000. About the same time Farley Grainger of Florida Valuation and Iconic Real Estate Investments both located in Jacksonville Florida won a bid at auction to buy another commercial real estate rental property located across the street and about 300 feet from the subject property which was to be appraised. Granger's property was improved with a 100% vacant 8,800 square foot commercial building that was in need of a rent paying tenant.
Shortly after the auction, Grainger received a bid request to appraise the subject property for a mortgage loan. Not withstanding that Grainger had the appearance of a conflict of interest due to his prospective interest in a commercial rental property located about 300 feet down the street, Grainger submitted a bid to appraise the subject property. Grainger won the bid to appraise the subject property. Later, Grainger was sent a questionnaire which asked Grainger if he had ever been sued. Grainger falsely answered "No". In fact, Grainger had been sued in the past for appraisal negligence.
On March 5, 2013, Grainger formed a limited liability company to be filed with the Florida Department of State. The name of the LLC was the address of the property Grainger was going to acquire from the auction.The managing member of the LLC was Grainger himself.
On March 6, 2013, an engagement letter was addressed to Grainger offering an appraisal assignment of the subject property. On March 7,2013, not withstanding Grainger's appearance of a conflict of interest, Graninger signed the engagement letter. In the said letter, Grainger represented that there was no conflict of interest either "direct, indirect, financial, or otherwise… in the property being appraised."
On March 11, 2013, it was arranged for $4,500 to be paid to Grainger upon completing the appraisal. On March 18, 2013 a deed was executed conveying to Grainger's LLC the property he had won at auction.
On March 19, 2013, Graninger and Edward De Laurier of Florida Valuation meet the owner of the subject property concerning the appraisal of the subject property. After introducing himself, Grainger did not say anything about acquiring an 8,800 square foot building that was only about 300 feet from the subject property. Also Grainger did not say that his LLC's property was totally vacant and therefore Grainger's LLC would be in direct competition for tenants with the subject property that Grainger was appraising. At the meeting, Grainger asked for and received information on the subject property's tenants, rents, lease termination dates, and overall business strategy. Grainger learned from the owner that about $425,000 of the prospective mortgage loan proceeds was going to be used to make certain improvements that would increase the subject property's appeal to prospective tenants. Also, Grainger learned that the prospective loan amount was $2,000,000 subject to the appraisal being done by Grainger being at the least $3,100,000.
At the meeting Grainger was given by the owner a study showing about 18 sales of commercial properties in the subject property's neighborhood. The sales indicated a sales value range of the subject property to about $7,000,000 to $10,000,000. At this point, Grainger did not reveal that another property sales had occurred about 300 feet down the street and that Grainger's LLC was the purchaser. Later, Grainger was told by the owner that a sale was occurring on a close by property down the street that had recently been sold at auction. Grainger was told by the owner that the public records were being checked daily but nothing had yet been recorded revealing the purchase or the price. Grainger was told by the owner that, when the deed was found, Grainger would be sent the information because he possibly could use this sale in his appraisal. Grainger said to the owner that the deed search could stop because Grainger knew the details of the sale because Grainger was a bidder at the auction, Grainger did not say that his LLC was the buyer and that a deed to his LLC had been executed the day before on March 18,2013. The deed search was stopped by the owner of the subject property because of, in my opinion, Grainger's deception.
In April, 2013, Grainger and De Laurier turned in their appraisal.Their appraisal was for $2,100,000 and was signed by Grainger and De Laurier. The appraisal revealed to the owner of the subject property for the first time that Grainger's LLC had ownership in the vacant property down the street which was clearly a potential competitor for tenants with the subject property.
On April 17 and 18, 2013, the owner of the subject property complained about the conflict of interest and about, in its opinion, certain errors and omissions in the appraisal. Not withstanding clear, if not overwhelming, evidence of conflict of interest, errors, and omissions in the appraisal, Grainger and De Laurier refused to increase their appraisal by any amount whatsoever.
On May 21, 2013, based on the appraisal of Grainger and De Laurier, the owner closed a mortgage loan for $1,575,000. This amount was substantially less than the amount necessary to proceed with the improvements that would have increased the subject property appeal to prospective tenants.
On August 15,2013, a disinterested MAI appraiser submitted an appraisal to the owner of the subject property for $8,900,000.
On January 13,2014, another disinterested MAI appraiser submitted to the owner a detailed review of the $8,900,000 appraisal concluding that the $8,900,000 appraisal " is appropriate and reasonable".
It is my opinion that Grainger did not tell the truth or do the right thing. I can not recommend Farley Grainger, Edward De Laurier, Florida Valuation, or Iconic Real Estate Investments.