All Forum Posts by: Mark Vejnar

@Darren Finney

@Chris Mason implies, and it's important to understand why.  

There are tools.  You asked about tools so I'll share one I've used through the years to identify and/or filter comparable sales.  I'll go ahead and state that I am not in any way affiliated with Court Retrieval Service (CRSdata).  I've found this tool invaluable as it gives access to tax records and closed sales, along with other useful data.  The tax assessor does mass appraisals each year and this data can be a fairly reliable way of checking assumptions.  You also have the ability to identify closed sales.     

Also, please ignore Zillow, and try to refrain from referencing Zillow when talking to appraisers. Is it possible to get ballpark estimates from Zillow? Sure, [blind squirrel analogy], but you have to really know your market.  I know I'm a data snob - sorry :-/

I hope this helps! Good luck!

I'd love to meet. Most of the 10th is booked but I can do something after 6pm. 

@Les Goss

Wow. Location directly impacts note values. Makes perfect sense. Thanks for posting the article and the link. 

Aaron Jordan I find that those constantly complaining about an over saturated market have their focus on the market and not on their business. I know MD's who complain that there are too many doctors and reimbursements are way down. I know other MD's who complain about never getting any time off. I'll let you determine which ones are generating higher earnings, have better outcomes, happier patients, and better reputations. I think as long as you're dominating your systems every day you'll be at the lead regardless of how oversaturated everybody else says the market is.

@Nicholas W. says, increase NOI. Cap Rate and GRM are utilized to reconcile value, but a strong NOI directly impacts decision making. Most buyers are utilizing 2-4 unit MF as investments so income typically carries the most wight in the final determination of value. However, because the subject is appraised as residential vs. commercial underwriters also care about sales comps. If you are able to buy a significantly deteriorated property and force appreciation through rehab, it seems to me you have a better case for refi and more equity to pull and reinvest in the next project.

Does that help?

For your reading pleasure:

https://www.fanniemae.com/content/guide_form/1025....

Welcome Matthew Mckinivan Your economics training is a competitive advantage. The wonderful thing about real estate, aside from fun/adventure, and money, is that it's practical economics. As an investor, you're a key contributor to keeping your chosen market economically viable if not vibrant. Explore the dominant industries and understand your community's contribution to the local, national and global economy. Get to know the planning office and the people in your community's housing and development offices. Spend some time getting to know your city's land use history, current zoning map, and 50 year plan. Look at where the city/county are investing in infrastructure, and then visit those places. Have fun and good luck!

Frank Sanchez Before reading this book I didn't really understand the difference between working a job and owning a business. Does he over-simplify and gloss over important details? Absolutely he does. And yes, it reads like a sales pitch and comes off a bit slippery, but it changed everything for me and possibly saved my life. I read his books, played his game, and left most dangerous profession in the US to become an appraiser and learn the market. I'll always be grateful for this book because it identified the different approaches to creating wealth, and left me with more questions than it answered. It enlightened while sparking curiosity. I appreciate your post. I read his book in 2003 and watched a lot of people lose their shirts by immediately implementing without developing an applicable knowledge base. It's always important to read with a filter, and be mindful of logical fallacies.

Have you discussed the property with the tax assessors office? It could be an error. How much gross living area (GLA) was added by converting the garage? Was the conversion done simply to increase GLA (and thus increase selling price) or is it a high quality conversion that was actually being used by the seller? The assessor will likely lower the assessed value if you can make the case that the conversion is fuctionally obsolete and that the best use for the space is as a garage. Ask if they will lower the assessment once conversion back to a garage is complete. 

The repeal of Glass-Steagle made it possible. Unfortunately institutional MBS investors depended on ratings and were thus deceived having no way of knowing the debt was bad. The bubble was made possible by the repeal.

@Nick Rudolph

The Wall Street Journal lists alphabetically all publicly traded securities. The idea of starting with the A's emphasizes evaluating everything instead of starting with preconceived notions. Your skill at identifying great investments increases as the volume of offerings analyzed and considered increases.