Record Keeping Question - Appraisals

[Account Closed]

Quick question about record keeping. When you ladies and gents have a new appraisal done, do you keep the records of the old appraisal? Example, I had a recent appraisal done at the purchase of one of my flips and it came back at 34k we paid 30k put 32k in it and it was just reappraised at 84k. Now do I need to hold on to both the old and the new, or can I just keep the new? Please let me know what you guys think, would do, or have done. Thank you!

[Dave Van Horn]

@Account Closed

Appraisals are only good for a certain period of time from a bank's perspective (general rule of thumb is about 6 to 12 months). That being said, if it's easy to keep, it wouldn't hurt especially for a buy and hold. Sometimes I've gone through old appraisals to find an appraiser in that same town for example or if I needed to refer that person to someone.

You never know if there's something on an old appraisal that you may need at a later date - it may give you more clarity on certain changes you've made to the property not just the overall value of the property.

In terms of flips, the old appraisal could help you show your business model to future investors when raising private money because it's third party validation of what you did pre-renovations. Then you could show them the new appraisal to investors and say "here's what it was appraised at before I did renovations, here it is after". Investors appreciate quality record keeping, it gives them confidence.

Hope this info helps.

Best,

Dave