All Forum Posts by: Mike Dittman

I have to disagree with everyone saying not to hire an appraiser, esp for a flip. Disclaimer: I flip homes, I have been a Broker in Charge. I am NOT an appraiser. Agents find your "value" off SF, comps, and recently sold. Fair enough. This does give you a value. This may or may not give your buyer confidence. A "certified appraiser" can give you a "certified appraisal" that a potential buyer can:

1- take to the bank, or mortgage company. 

2- This is an excellent sales tool when it comes to a buyer signing on the bottom line, and unless your buyer is paying cash, it needs to be done anyways. 

3- Is a solid and certified validation with regards to your asking price.

4- Lets you know for sure how much money is too much money on the project /

A CMA is subject to the RE agent choosing comps within a given area, and thus subject to that agents "opinion" of which properties work best on a comparative level. Agents are not appraisers, and a lender will not lend on a CMA. Each individual property has it's own attributes. Depending on how deep you are going into your rehab, (ie. new elec, HVAC, and so on) adds a value beyond what comps can see. 

So is it necessary? No it is not. Is it wise? Well, you can decide when showing your shinny new property to a potential buyer, and give them a copy of a "certified appraisal" to take home, and the bank. If nothing else, it will tell them you are on your A game. It further lets you know, an agent isn't blowing sunshine up your *** to potentially gain the listing when the property is complete. For me personally, $400 -  in the scope of a rehab, is money in the bank, money well spent. 

Mike has good advice. Go ahead and put the two into one LLC. As you grow, talk with BOTH your CPA and your attorney to find protection and tax advantage. Separating each asset into it's own LLC, is it's own entity. If you should be sued one one, it is harder to tie to another. This also helps in keeping frivolous lawsuits at bay as you grow. Shady lawyers are less likely to waist there time with less to attach to, or so I am told:) Good Luck.