Quad Plex with an ADU

[Terrel L. Shields]

I have been licensed two years.

Hate that for you but I'd be surprised if mortgage activity increases. May I suggest you hunt up an insurance underwriting and inspection service? Maybe be a contractor for a company perhaps part-time. I had a inspection after I changed policies, and I asked him if he worked for the insurance company direct or was a contractor. He said he was working for a contracting service.
This one is in S. California

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[Non Sequitur]

Must be the same AMC that claims STR income can be annualized on the 1007 form.

 

[George Hatch]

You might find it instructive to inquire as to the actual lender and THEIR appraisal policies with 5un properties. What they require of the SR1 analysis and the SR2 reporting. If they aren't operating in the conventional lending pipelines then the licensing factor itself might not even be an issue.

If the lender has no written policy then that might be a red flag for a situation where they end up revising their expectations on the fly and after the fact. You don't want to get involved with a lender that doesn't know what they're doing with these.

You *especially* don't want to get involved with trying to stuff a square peg-5un into a round hole 1025 form. The 1025 and its variants is the worst appraisal form in existence for multi-family 2-4s, let alone for off-label usage on 5+un properties. Never would I ever.

If you do end up taking the assignment then you should plan on taking a beating on the fee when compared to what you normally do. Doing new-to-you always costs you more time/effort the first time around.

You cannot use 2-4un properties as comps for 5+ multi-family. You're not using a GRM or operating off the monthly rents but are operating on the annual income and analyzing for net income after expenses and the use of a direct cap rate.

Figure out what you need to do and if it the resulting report will even be acceptable to them first. If so I wouldn't mind showing you - as a professional courtesy - how a CG would do this assignment so you'll at least have a shot at completing the assignment in a competent manner. It's not rocket science or beyond the abilities of a competent CR to figure it out, but by the same token nobody was born understanding how to fake their way through it, either.

 

[Carnivore]

If I got that assignment offered to me I would hop on the phone and call my CG/MAI friend who I have known a long time and let him talk with this client and then be his gopher.

 

[Bobby Bucks]

Must be the same AMC that claims STR income can be annualized on the 1007 form.

Yes, that AMC Chief Appraiser is world famous in two Facebook groups, his name is DivideByTwelve.

 

[Fernando]

True. I am struggling. I have been licensed two years. Just got my Certified in January. Only made $20k this year. So, I am trying to take every opportunity I can, without taking something I will get into trouble for.

Did you call BREA on this? I'm interested to know.
If not legal ADU, can't imagine it can be counted as a 5 unit building.

 

[bishopsnet]

The state of NC has a significant different position on this. If I can find which newsletter it is I will post it. I really need to post it because the CG's hair might catch fire.

The Major difference has to do with if its for a FRT or not. Let's assume this assignment is for a FRT You can not complete this assignment because it is more than 4 units.

If its not an FRT , you can complete this assignment as long as you can comply with USPAP Rule #2 COMPETENCE

The example they gave was vacant land zoned for 4 units per acre. You can do that assignment regardless of FRT or Not.

If its zoned for five units per acre and is for for an FRT Res Appraiser CAN NOT ACCEPT THAT ASSIGNMENT

It was for an AMC. I am pretty sure it was an FRT and they are trying to cut corners on it not being a commercial loan.

 

[George Hatch]

If its an FRT then you're done. The loan itself will be subject to individual review by the banking regulators. Depending on the size of the institution the regulators might not actually get to it, but if they do they're going to hassle the lender for cutting that corner.

No matter what, the benchmark for what is/isn't enough will be what a CG would have done on that assignment, not what a first-time appraiser at the CR level would have done.

You should give yourself a pat on the back, though. FRT lenders are hard to get on with and their AMC tried to get you in with them.