Using the bank's appraiser early in a BRRRR deal to determine ARV

[Tyrone Osilesi]

Hey BP,

Has anyone ever been able to use the appraiser or appraisal company the lenders use early in the BRRRR process to determine what they believe an ARV would be?

Seems to me this would be a good way to know with a degree of certainty what your project will appraise for. Is it professional to just flat out ask the lender for the name of the appraiser they use?

Thanks.

[Aaron K.]

Not worth it, because 

1. Appraisers don't appraise the same every time

2. They don't know what your finish level will be when you're done

3. It is expensive and if you are willing to pay that in the stages of deciding if it is worth it you'll spend a lot of money on deals that fall through

4. Seasonality affects the market so what it appraises for now may be different than what it appraises for in 120 days when rehab is done and you are in escrow with a buyer.