All Forum Posts by: Robert Lindsley

@Russell Brazil That's interesting. Could you explain why that is? Does a listing agent work with the appraiser on the comps?

Since there are no agents involved with this deal, does that impact the decision on whether I should get an appraisal?

Thanks!

Robert. 

Thanks @Eric Fegan for this info.  I'll see if I can find recommendations for a certified general appraiser in the area.

Thanks everybody for your help with this!

Robert.

Thanks!  the property is being financed via seller financing so there's not a bank contingency.

I'm not adverse to doing an appraisal if it makes sense.  But I want to understand what the value is beforehand.  If an appraiser comes in and says "Well, the house down the street is worth $150k so that's what we'll comp this at" then I've just thrown $2500 in the garbage.

Do you know if a commercial appraiser uses a specific formula, or do they look at the rental income numbers?  I guess I just don't understand how it's different than a regular residential appraisal.

Thanks for your help!

Robert.

Hey there,

I'm in the process of buying a multifamily building (7-unit apartment building with an additional commercial space).  Getting the final PA has taken awhile, but I'm finally ready to move forward with inspections, appraisals, and environmental assessments.

I'm trying to figure out if it makes sense to do an appraisal.  From a financial perspective the property makes sense, but what would an appraisal tell me?  How would somebody even appraise a property like this (assuming there are few/no direct comps), would they do it based on cap rate?

I'm looking forward to hearing your thoughts on this.  If an appraisal would be useful and accurate it seems like it would make sense, but not sure that either would be true in this case.

Thanks!
Robert.

Hi Sloan,

Thanks for reaching out.  We signed the Purchase Agreement last week.  I'm now in the process of lining up some private money and moving forward with inspection, environmental assessments, etc.

So far I've found Norwich to be a great area.  And now Utopia has been greenlit which will bring an additional 1200 jobs to the area.  What made you think of Norwich for investment?

I have a question for the group -- I'm thinking about the need for an appraisal and I'm wondering what the value of an appraisal would be?  What would an appraiser comp against?  Do they evaluate based on cap rate, or would they appraise the structure against other structures? 

Thanks!
Robert.

Hello Michael Autry It's great that you're considering multifamily units. If you decide to make the leap and you find the right deal you're going to be really happy. As a first step of diligence I would head over to the Biggerpockets calculators and run some numbers. When I'm considering a multifamily i use the rental calculator. In that calculator you will add all the income and expenses -- from there it will give you a bunch of important data (cap rate, noi, etc). Of course to effectively use the calculator you'll need to do some research (talking to the broker to get the rent roll, understand utility costs, know how much taxes are, etc). Once you know the rents I would also compare with other properties in the neighborhood. I typically use www.rentometer.com but you may have other tools. Best of luck, and don't hesitate to reach out to the forums with any questions. People here are really helpful. Thanks Robert.

Hi @Stephanie P.

I haven't yet -- I was traveling last week so wasn't able to make much progress on it.

Hopefully the PA for the property will be signed next week.  From there I have 15 days to finalize the funds.

I'll give you a call next week.  Hopefully there's a way we can work together!

Thanks,

Robert.

@Adam Schneider that's really insightful.  Thank you!  Yes, that's exactly what's happened with a couple of investors - they're simply not interested in taking second position on a property....understandably so.

Hi @Stephanie P. I'll PM you.  Thanks!

@Jay Hinrichs I'm thinking the term would either be 12 or 24 months.  An equity partner is a good idea -- I'm actually looking for a financial partner to work with on multiple deals and that could be a good answer.

Hi @Stephanie P.,

Ideally I'm looking for $40k. The property is a 7-unit multifamily building with an additional commercial space. Fully rented (except the commercial space) and positive cash flow out of the gate. 

Looking forward to hearing your thoughts. 

Thanks!

Robert.