1007 and 216 Requirements

[OG80]

I just received an order that includes both a 1007 and a 216 Form. What exactly do I need from the client to fill out these forms?

 

[Terrel L. Shields]

Ask the lender for a rent schedule for the subject. You'll have to research other similar sales for rent info. Hunt the rentals on your MLS if they provide them. If not, gotta lot of shoe sole work to do. When you get those make sure you get a decent appraisal fee. They can be time consuming if you don't have a data base of rentals.

 

[TerryRohrer]

A much higher fee, to start with!

 

[OG80]

Live and learn (about the higher fee!) So, I need info from the lender for the 1007 AND the 216 or different information from the lender for each one?
BTW, any chance I could get a PDF of an example of each to look at?

 

[Terrel L. Shields]

different information from the lender for each one?

You need the rents for the subject. The owner or the lender should provide those.

The other info you need to locate yourself from sales - The 216 is info you get from the lender or borrower/owner.

The 1007 is the one you have to research from sales and rents you find from area landowners if you can't find the info on the MLS. Some Realtors specialize in property management and you need to make friends with one

 

[Dublin ohio]

If subject is tenant occupied. You will need the leases. As far as the 216 goes. You should get the income and expense information from current landlord. But in my experience. Good luck with that. Otherwise. You will have to fill out the 216 with your best guess . Oops. I mean "estimate".

 

[bnmappraisal]

I am guessing you are talking about Residential property and not Commercial. Since your status states Trainee, I don't know
I am strictly RES and will answer regarding RES work
I am also assuming you are using form software (Total, ACI, Bradford, etc) Both forms (1007 & 216) are in those software packets (at least they are in Total, which I use)

As @Dublin ohio points out, you will need info regarding the current leases if the subject is currently rented. Also as he points out, "good luck with that" it's not always easily forthcoming
The 1007 is a rent schedule and asks for an opinion of market rent. This requires 3 rental comparables and you make adjustments to them similar to your closed sales comparables
The 216 is the Operating Income Statement. Again, you want to "TRY" to get this info from the landlord/property manager/owner whoever, but it's not always easily forthcoming

Good luck and welcome to the Forum

 

[OG80]

I am guessing you are talking about Residential property and not Commercial. Since your status states Trainee, I don't know
I am strictly RES and will answer regarding RES work
I am also assuming you are using form software (Total, ACI, Bradford, etc) Both forms (1007 & 216) are in those software packets (at least they are in Total, which I use)

As @Dublin ohio points out, you will need info regarding the current leases if the subject is currently rented. Also as he points out, "good luck with that" it's not always easily forthcoming
The 1007 is a rent schedule and asks for an opinion of market rent. This requires 3 rental comparables and you make adjustments to them similar to your closed sales comparables
The 216 is the Operating Income Statement. Again, you want to "TRY" to get this info from the landlord/property manager/owner whoever, but it's not always easily forthcoming

Good luck and welcome to the Forum

Thanks. Appreciate the reply. Yes, Residential.

 

[OG80]

Dumb question No. 1113. The report that includes the 1007 and 216 is a new build. Does that make a difference? I guess I am going to have to come up with the #'s from "air" given this?

 

[Dublin ohio]

Dumb question No. 1113. The report that includes the 1007 and 216 is a new build. Does that make a difference? I guess I am going to have to come up with the #'s from "air" given this?

AS far as the 1007 goes. Just use market rents to develop opinion of market rent for subject. Some items for the 216 will be somewhat easy to estimate. Such as replacement reserves. Since everything will be new. Depending on the type of roof. You economic life could be anywhere fro 20-50 years. You can get an idea of appliance life from various on line sites. Furnaces usually have a life of about 20-25 years. AC units maybe 15-20 years. In Texas. Probably shorter as they probably run a lot more than in the midwest. Maintenance costs can vary. A lot depends on quality of tenant. But you can assume that tenant will take reasonable care of unit. Management cost around here is usually about 6% of rental rate. Your market may vary. Some of it will be a "swag".