Hello, I am brand new to REI, at this point a little over a month in. I've been researching and networking like crazy in the last month and what I'm beginning to realize is that everything starts and ends with comps/numbers. As they say, "you make your money when you buy."
To start, I think my strategy will be to invest in multi-property units and then eventually try my hand at flipping or wholesaling. I have no relevant experience in real estate and want to get to the point where I see a property and can say, this is worth X if you fix A, B, and C (basically ARV).
It got me thinking, why not go for an Appraiser Trainee license. Properly appraising a property is a valuable asset in any form of REI. There is an online course I can take for roughly $700, totaling 60 hours. All in all, investing in yourself is never a bad thing. However, it leads me to a few questions below...
- Is comps/appraising just a matter of experience and getting out into the field and seeing properties for myself?
- Is there enough free resources online and on BP to figure out comps/appraising for myself or do I really need real world experience?
- If you were starting out, is this something you would do?
- I feel like I have a solid understand of the REI concepts and fundamentals, I felt like practicing on comps was the next logical step to take, should I be doing something else or am I on the right path?
Any feedback would be greatly appreciated!
FYI, for your reference below is a description of both courses I've been looking at.
Basic Appraisal Principles
This four-day course will introduce you to real property concepts and characteristics, legal considerations, influences on real estate values, types of value, economic principles, market area analysis, highest and best use, and ethical considerations. The course will provide a solid foundation in basic appraisal principles no matter what appraisal specialty you pursue.
Basic Appraisal Procedures
The course will take you step-by-step through the valuation process including identifying the problem, collecting and analyzing data, reaching a final opinion of value and communicating the appraisal. You will learn about the three approaches to reaching an opinion of value-income capitalization, cost, and sales comparison-and apply them in true-to-life case studies and problems. After examining income capitalization methods and formulas, you will learn how rates and multipliers are derived. Through case studies you will discover the steps and concepts involved in the cost approach-how appraisers estimate the cost of constructing a reproduction of or replacement for an existing structure; the three major components of depreciation and methods for estimating and allocating depreciation; and land and site valuation. The course will guide you through the sales comparison approach including researching the market, verifying information, selecting units of comparison, conducting a comparative analysis, making adjustments, and reconciliation. You also will complete key sections of an appraisal report. In addition, the course provides an introduction to property description and construction and design basics.
