4 unit multi family

[Zoe]

I can demand 2 years income/expense statements and rent roll. I set SOW.

I can require copies of leases.

 

[Zoe]

Rent roll would suffice in your case and possibly income expense statement for 2 years if possible. List of any any improvements etc. I would not request copies of leases but you could.

On a 4 unit, I would like to see all 4 units. If owner said, well this one we are having problems negotiating, I would say okay. I would like to see at least 2 units and the income/expense statement and rent roll.

When would you like to schedule the appointment?

I could probably trust owner on seeing one unit if it looked occupied and rent roll and income/expense statements looked good.

In a lender situation, the lender should have those items, so you could just get it from the lender. Even better.

You can educate the lender if you need to.

 

[Zoe]

See, if my client was lender and lender did not provide me with what I mentioned above, I would require the owner send it to my client and my client send it to me. I would not take it from owner if lender was my client. My client would be required to send it to me or appraisal would be over.

I would take it from owner and say can you please provide this to my client. I need my client to send it to me.
I can explain how it keeps everything clean if the information flows that way. However, thank you for sharing it with me and this will help me proceed. However I would want it on front end from my client before I got that far.

 

[sputnam]

See, if my client was lender and lender did not provide me with what I mentioned above, I would require the owner send it to my client and my client send it to me. I would not take it from owner if lender was my client. My client would be required to send it to me or appraisal would be over.

I would take it from owner and say can you please provide this to my client. I need my client to send it to me.
I can explain how it keeps everything clean if the information flows that way. However, thank you for sharing it with me and this will help me proceed. However I would want it on front end from my client before I got that far.

You can't REQUIRE them to do anything. You can decline or withdraw from the assignment.

 

[Zoe]

You can't REQUIRE them to do anything. You can decline or withdraw from the assignment.

You are spot on and send them a bill for services rendered. The way my engagement reads, I don't start until I get the information i need and I outline what I need. They sign the letter. I don't start until the stipulations are met. Sometimes so much up front is required in the engagement. Sometimes so much money is involved up front before I start. The money is to jump start me.

If it is a client I trust, I don't ask for any money up front. I would definitely ask for rent roll and income statements on this particular assignment the original poster posted before I start.

 

[Zoe]

You can't REQUIRE them to do anything. You can decline or withdraw from the assignment.

In summation, if I didn't get the information I know I need, I would refund the money I asked for up front, or I would not start the assignment.

Me and client would go our separate ways. Call me on next assignment. You know I want to help you. thank you for the opportunity.

 

[George Hatch]

Analyzing past year income/expenses is a user-driven requirement. Sometimes the client will have access to that info, sometimes they won't. Even when the property owner provides income/expense info from previous years its sometimes incomplete or otherwise inaccurate. I have been lied to plenty of times.

 

[Zoe]

Analyzing past year income/expenses is a user-driven requirement. Sometimes the client will have access to that info, sometimes they won't. Even when the property owner provides income/expense info from previous years its sometimes incomplete or otherwise inaccurate. I have been lied to plenty of times.

I have no problem getting it from the owner. The owner would at least have current rent roll and other information I need. I still prefer the owner send it through my client. If the owner is my client, I don't need them to send it through my client.

If I am doing appraisal for a loan, it keeps it clean if everything goes through my client to me. It keeps my client in the loop.

On a 4 unit complex, the owner needs income/expense statement to file with IRS. If they just bought it, the new buyer has income/expense statement from who they bought it from. I say that, if I bought it, I would want income/expense statement from who I bought it from among other things.

 

[Zoe]

On my engagement with the lender, the lender would have to ask for the data through the owner/buyer. The lender is in much better position to ask for it than me, but I am not shy. I can back out at anytime if I don't get what I need.

Thank you for the opportunity. Please consider me on your next appraisal assignment.

 

[George Hatch]

The main reason we perform rental surveys is because we don't assume the reported contract rents are equal to the market rents. Same with income/expense forecasts, GIM/GRM factors and so forth. Sometimes these property are being well managed and sometimes they aren't. Sometimes the property owners are telling us the truth and sometimes they aren't.

I don't get mad at a property owner or a broker who is trying to zoom me. It's just people trying to do as best they can for themselves. It's just business. But I have to hold the line because that's what I sell - my honesty and objectivity and credibility.