All Forum Posts by: Sonya Stovall

@Brandon Turner  that's a loaded question.

Q1 - Capital Expenditures are included in appraisals of apartments(I'm talking about units bigger than 4-plexes).  I've been in the DC area now for 4 years and have not appraised since I left MS.  When we did appraise an apartment, we would interview the manager/owner and get details of operating expenses  (would request a copy of the Schedule E from the past 3 years) and of capital expenditures recently to help determine depreciation of those items(actual age) and determine capital reserves calculation for the pro forma.  Analyzing both operating and capital is key and determine if the unit has a rate at normal for market, higher or lower.

Q2 - I would inquire about actual cost paid for the unit, how was it financied at time of purchase  and the financing terms(can be used to extract a Cap Rate). Also any other liens or loans on the property(this does not affect valuation but information that is good to know and have in the file).

This is a quick, short overview and I assumed your reason for the appraisal is for market value for lending, refinancing purposes.  If it is for insurance (insurable value) or other reasons the answer will change.  Hope this helps.

The $295 fee sounds like an admin fee charged by some Brokerage firms.  I don't understand having the pay the fee if you don't close; makes no sense.  See if you can just sign a Buyer'a Agency Agreement which is just for the one property you are closing on. Do check with others and inquire the norm and most importantly ask the Realtor's Broker the need for the fee, etc.

@Dev Horn I think you are correct and that is why as Agents we also have to exhibit discretion in deciding who we will represent.  Contacting a Seller prior to the listing expiration(knowingly doing so) in some jurisdictions can be unethical/illegal/a no-no.  Whoever(Agents) is having success with expireds, Good Job and Awesome.

As an Investor & Realtor it depends and varies depending on your location. While Licensed in MS as a Realtor and where I own rental property I as an agent looked for my own investments via the MLS, LoopNet, CoStar, etc (MS is a non-disclosure state). The investor I represented was from out of town and did sign a Buyer Agency Agreement with me(6-9 months contracts). I closed a deal(no problems encountered). My broker requested of all her agents that we not work with Buyers without a Buyer Agency Agreement(not an Exclusive Buyer Agency Agreement). BAA are commonplace in MS (at least the Jackson area) and are easy to terminate prior to the end of the contract. EBAA(I've never had or asked a Buyer to sign this type of contract) from what I'm told and understand are not as easy to terminate prior to the end of the contract. From the Broker/Agent stand point, he/she is asking the Buyer, hey If we are working well together, respect my time and do not work with another agent at the same time for the same type of property. Most credible agents and BAA's will let the Buyer terminate the contract at any time in writing. No one wants to work with a client when the relationship is just not working. So from my stand point, it doesn't hurt you to sign one.

Now I work in the DC area and my Broker here has the same request, that we not work with Buyers without the BAA signed. I have a seasoned investor that has one signed with me to help him find a property he is seeking. He is local(in VA) but does not know the DC market well. So far so good, but he can send me an email tomorrow and say, Hey it's not working and I want to terminate(his contract is signed until the end of March). The contract would then be over. In DC the term of these contracts is much shorter than in MS.

I had family over for the weekend from the Columbus, OH area and we just talked about BAA because they are working with a Realtor for a Primary Residence and an Investment Property and have worked with the Realtor for over a year without a BAA.  They felt they were not commonplace in that area, having been through  the process before with other agents.

Ask around your area to determine if most credible agents require it.  I feel it (singing the BAA) respects both sides from their time stand point and  professionalism that is expected.    I hope this helps.

@Pam Black, my broker does this with success.  I have not been able to join her yet on any of her seminars.  She does it at big Apartment Complexes and they put it on their calendar of events for the tenants.  Flyers are also posted inside at about 2 days before the event.  She does bring a Mortgage person with her and they tag team and answer questions from the group.  You can also with with local politicians who host forums/education events for their constituents (target areas with higher rentals).  Just some thoughts and good luck!

Welcome @Dave J.  and good luck with everything.

I agree with @Zach Mitchell .  If you are only looking to invest in Residential and not work full time as an appraiser, it can be costly and timely.  The courses you outline are the initial course to be a trainee.  After that, there are so many more, which might not all be local, to be licensed.  I am a Commercial Appraiser (have not appraised now for 4 years), but the knowledge does help me when I am looking in Multi family properties I want to invest/buy.  So if you want to venture into Commercial, consider it or the CCIM designation.  If you will strictly be residential, and never appraise; I would not bother.  Good luck and Happy Investing.

@Octavia D. are you investing in TX? If so, I think you may need a good realtor in your list of go to people when you are stumped. By not being able to afford, if you are referring to paying realtor fees for buying a property or listing, I understand. However, knowing that TX is a non-disclosure state(I moved to the DMV from Mississipi, also non-disclosure) you need someone that can help you in cases where you do need "inside information." All good relationships at some point end up being mutually beneficial. I am sure you can find someone that will understand, you don't need a realtor but I need help/information at times. Depending on your volume, you might need to let them benefit on one of those deals or send them referrals when they come your way. I find that non-disclosure states and FSBO are the worse for that reason, the homeowner really has no clue sometimes and is going off what a neighbor said and the neighbor is not giving them all the information necessary to truly understand the financial implications of the deal. Good luck! and happy investing.

I agree with your Seller; but I don't wholesale so maybe those transactions are different.  In traditional RE deals, the seller wants you to be vested in going the distance to make the offer work and 1% shows some effort.  Here in the DMV, on deals/areas where investors are plentiful, 1% doesn't even cut it.  However you are financing your deal, cash; hard money, etc, another deal  could come across your desk that is more profitable and you could drop her in the wind(assuming you couldn't do both deals).  You have to offer her something to let her know you are the read deal and will close.  Offer up Proof of funds letter and the ability to close the deal very very quickly(if possible).  If I'm off base because I do not wholesale, sorry but I think the mechanics of people's trust in the process and wanting to close a deal are the same.

@Steve M. if that lead does not work, go to the Appraisal Institute website, http://www.appraisalinstitute.org and you can search by zipped and look for an appraiser with an SRA designation.  I'm biased, I am a Commercial Appraiser and take courses with the Institute.  They will only list appraisers who have been trained, coursework, etc with them.  Good luck!