FLIPPERS - What’s Caught You Off Guard in Your Deals?

[Sam Shikiar]

Hey everyone, Sam here. I do flips and multifamily investing in Columbus and LA.

So, here’s something I didn’t know going into my last flip: if you’re dealing with a split-level, appraisers can decide that anything below grade doesn’t count toward the square footage. Ended up getting an offer at asking, but the appraisal came in way lower than I expected. Lesson learned. I still made it work, but man, it was close.

Has anyone else been blindsided by something in a deal like this? I’d love to hear your stories—especially if you’ve had something unexpected happen during an appraisal or inspection.

[Marc Rice]

Quote from @Sam Shikiar:

@Marc Rice yea I knew that was the case with basements but hadn't heard of this with bi-level. New criteria to add to my buy box lol. 

 1/3 appraisers call it out, usually can get a new one. Although I once had 2 separate back to back ones call it out (I was repping buyer, deal died).