Can you do a 216 without a 1007

[CJ1234]

Opinions please,

Lender has requested an Operating Income Statement, but not the 1007 form.
What is your opinion? I feel that I cannot do the 216 without first determining what market rent would be.

 

[Randolph Kinney]

Opinions please,

Lender has requested an Operating Income Statement, but not the 1007 form.
What is your opinion? I feel that I cannot do the 216 without first determining what market rent would be.

You can do a 216 without performing market rent 1007.

The 216 has both current rent and market rent. Fill it in with just the current rent.

The 216 is for the UW looking at cash flow that is based upon the current rent, not market rent.

 

[gregb]

And if the units are vacant?

 

[Randolph Kinney]

And if the units are vacant?

So you call the lender and tell them the current rent is zero, do you want a market rent survey form 1007 along with that form 216?

 

[hastalavista]

I think you can estimate the expenses without estimating market rents. You'd have to add some commentary into that form/addendum to explain why the market rent (or even actual rents) were omitted.
I'd call the client to confirm this is what they want. Be proactive.

 

[gregb]

Instructions on the 216-

 

[Randolph Kinney]

Instructions on the 216-

Like I said, the 216 is for the UW.

 

[hastalavista]

Instructions on the 216-

I don't consider (and I may be a lone wolf here) the 216 to fall under the typical GSE (1004, 1025, etc.) instruction of not being able to modify the so-called pre-printed instructions.
So, I wouldn't have an issue of amending those instructions if (a) I consulted with my client first and (b) I explained what was different in the form/addendum.

But that's me!

 

[J Grant]

Do your own determination of market rent without filing out the form, keep results of market rent study in work file

 

[Dan Umstead]

Do your own determination of market rent without filing out the form, keep results of market rent study in work file

So, you are asking the original poster to develop an opinion of market rent, assuming it is not necessary in developing an opinion of market value in the appraisal report?

I know many things, but I do not develop opinions without compensation.