All Forum Posts by: Bill Fennelly

Assessors Records and Building Dept. are two different things, if it is not considered to be legal with the Building Dept. than you wouldn't get credit in an appraisal...if it is not legal and that illegal kitchen causes a fire your insurance company may have a problem with your claim !!!

 I agree with Craig, local knowledge is always best, I was on the phone yesterday with an investor going to an auction of a house that I had sold as the broker a few years back, I knew the back story because my brother had owned the house prior, short story is he was going to be far more aggressive at the auction given the intel on the property, and we almost wholesaled it as I called a guy I knew that had been looking for a property, but as it goes he already had a contract on something and the bank ultimately took back the property at the auction, yesterday in the rain with several investors on hand ready to buy...I see opportunity all the time in several cross over marketplaces given being active as a full-time broker & appraiser...just my opinion, have a good day ! 

Watch active rents, days on market and inventory levels, info in MLS is usually limited as noted above, and I have found more often than not that smaller owners are getting lower rents from family or long term tenants, getting it vacant, do whatever renovations if needed, get your own tenants at a higher rent and don't take someone else's headaches...just my opinion.

Walking through 1 bedroom to get to another is generally considered to be a privacy violation, so the middle entry bedroom may not be considered by and assessor or an appraiser, I personally will look at the layout and consider how a typical end user in that marketplace will utilize the space, while I hate to get rid of bedrooms and bathrooms, in this case it may be worth consideration given the privacy violation, smaller bedrooms to begin with, as well as lack of closet space...just my opinion, good luck. 

As an appraiser I can tell you that it should never happen, clearly doesn't make sense, an underwriter should also call the appraiser on this as well. 

Always return your calls...you never ever know what will come of the conversation...give him/her another call if you are that interested, or better yet get a broker that will be working in your best interest to set it up, as a broker I would have returned your call, but just like anyone here we all have those days, family crisis, work crisis and everyone knows this business is always causing fires to be put out...either way, return your calls, there's money on the other end of the line, no excuses !

Pay for the property based on the current cash flow, which would sound like 25% below market since the rent is essentially 25% below market for the property and make those numbers work...or have the seller get rid of the tenant before taking ownership and bring in your own tenant, if the tenant is on a fixed income you will not get blood from that particular stone...best of luck.

Definitely worth the time and effort to have your license, my feeling is that you need to be in business to get the business, you will find opportunities around each corner but first you will need where to look, plus the other agents/brokers in the office and or community may turn you on to deals...I am both an active broker and appraiser which certainly helps me in valuing opportunities and it brings me in contact with all sorts of people and situation that are real estate related...I say all the time that real estate (brokerage in particular) is an easy business to get into but a very difficult business to stay in !

Get local knowledge, call a local full-time appraiser or a veteran broker...pay them for their time, it will save you ten fold in the long run.

Bill

Are there any landlords and/or investors out there that focus on larger college or university areas with huge under grad and grad programs that provide steady tenants, advice, pros and cons of this approach to building cash flow ?