All Forum Posts by: Mark Vejnar

@Daniel Campana

@Wayne Brooks gives good advice. Check out the appraisal institute website and find an SRA in good standing. Cross reference them with the state board to make sure there are no ethics complaints. Ask for an appraisal on the appraisal institute form. It's a better form the the Fannie Mae forms, and gives you a well supported, clear, concise opinion of value. 

@Eric H.

I like your materials. Did you have a copywriter put that together? What was your copywriter's take on language to inspire a better response? Or am I overthinking this (it wouldn't be the first time)?

@Sheldon Alex

Search city and county GIS maps. If start by actually visiting city hall in person. The planning office is a wealth of knowledge and inspiration. The assessors office is also quite helpful and both will show you how to best navigate their sites. Some even have layers showing utilities on the property. It's worth the time to meet and greet the people behind the website. 

My first deal was land. Infill lots are pretty common out where you are. We looked at all land listed on the MLS. Then I went to the city (now this can be done online) and compared list price with assessments for all land in the subdivision - even developed land. Next we looked at closed sales on similarly sized and zoned vacant land and made an aggressive offer. The market was picking up steam so we did very well flipping it to the city.

@Gerardo Dominguez

Sorry - about point two: as long as the bedrooms and baths have the functional utility of bedrooms and baths I can't imagine there would be a problem. Ask your agent or broker as they are on the hook for listing details. 

I've seen post WW2 era cape cods list the second floor as bedrooms even though it was not heated. For GLA calculations I could only give it consideration if it was heated, but that didn't stop people from buying a "4 bedroom" cape cod. 

Basement living areas will not count towards gross living area (GLA) regardless of what you do; however, if this type of construction is typical for your area then you should not have trouble finding comps with basement bedrooms and baths. Subterranean living areas can often receive the same square foot calculation as GLA, just on a separate line item. The appraisal will then write an explanation in the addendum. 

It's usually important that the bedrooms have full height ceilings, and they may be required to have windows. HUD and FHA will require windows above grade, but I don't have the guidelines in front of me and I forget specifics regarding basement living areas. Ask an appraiser in your network for specifics relevant to your market.

@Mike Smith

I agree with @Howard Klahr

The value of the appraisal, and this is pure speculation, is probably placing most of the weight on the market approach. If you're dealing with a rehab, then cost approach should carry more weight because of the costs involved to bring the subject to market. Time is a factor. Submit your scope of work and line-item cost sheet to the attorney's office and ask that it be compared with the appraisal. Is your scope of work exhaustive? Are you truly accounting for all expenses to make this property stand out and sell quickly? My suspicion is that by the time you account for [$60k?] in repairs, holding costs, marketing fees and transfer fees - you're probably within 80%. 

@Danielle Cage

That's awesome! Congratulations!

Just curious - have you decided on your inbound process? Are you doing a website, pre recorded message, or something else? How hard was it to find a good copywriter for your message, or is that even a concern?

@David Dachtera @Jeff Bridges

Could you use trusts for protection? Where personal assets are held in trust by a friend or relative living overseas and investments are held in a combination of trusts and LLCs? 

@Bevla Reeves

The cost approach to value is probably most applicable when looking at candidates for rehab. Simultaneous examination of sales comparables and income producing properties is also essential for determining how much "meat is on the bone," what exit strategies to consider, and whether or not it's a viable opportunity for investment.