1007 and 216 Requirements

[TerryRohrer]

I'm sorry TerryRoher. Am I bothering you by asking questions on here? You can simply not read my posts if that is the case. I find a lot of help on here and the appraisers on here are fantastic!!

I don't have any problems with your questions, but if you are not getting answers to these questions first-hand, and can't get a copy of various completed forms, then you don't have a mentor! But, do as you will!

 

[Terrel L. Shields]

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

Then you have the problem of the "real" books vs the "for IRS" books....

 

[OG80]

Then you have the problem of the "real" books vs the "for IRS" books....

The problem here (IMO) is that it's a brand new build. Is this typical?

 

[Basically Rectangular]

The 216 should not be a problem, especially if the subject is a new construction. They are trying to establish replacement reserves. It is more relevant if the subject is a multi unit vs SFR.

The 1007 is more relevant (in my opinion, in my experience based on my fee I have seen the 216 often get cancelled, but not the 1007, although this depends on the lender).

***Tip*** Look into SPARK, it is an online appraisal software that will populate your grid with comp info and rental info. The 1007 becomes less of a hassle.

 

[KONA]

Trying again

 

[Tim Hicks (Texas)]

The problem here (IMO) is that it's a brand new build. Is this typical?

It can be, but you will learn more from your supervisor than you could ever learn here on the forum. It is simply too difficult to teach the ins and outs of the 1007 and 216 on a internet site. New homes, you have no previous rent history, so you are expected to estimate market rents. Age will not be much of a factor if you stay with newer home rentals. The 216 has too many variables to discuss in detail.

 

[KONA]

Oldguard, I sent you the six page document regarding the form 216

 

[Fernando]

I appreciate the many here in the forum giving valuable advice.
Since I see you are a trainee, your mentor/supervisory appraiser should really be telling you at least the basics in how to fill out the form.
If you have a bad mentor then this is a great place to learn.

 

[OG80]

The 216 should not be a problem, especially if the subject is a new construction. They are trying to establish replacement reserves. It is more relevant if the subject is a multi unit vs SFR.

The 1007 is more relevant (in my opinion, in my experience based on my fee I have seen the 216 often get cancelled, but not the 1007, although this depends on the lender).

***Tip*** Look into SPARK, it is an online appraisal software that will populate your grid with comp info and rental info. The 1007 becomes less of a hassle.

Thanks. BTW, Spark looks interesting. You use it vs what? Datamaster or...

 

[Terrel L. Shields]

Is this typical?

I've had bankers tell me that a lot of small retail owners and service people report extremely small incomes and high expenses...with the excuse, "You know, everyone does it."...

New construction will require to to estimate the costs pretty much on the basis of the owners guesstimate or your own...