Ready to Start My Own Appraisal Business

[Reality Check]

I do not have a Certified General at my disposal unfortunately. My supervisory appraiser was an MAI, SRA for over 30 years, but he retired once I was certified. I'd like to start looking at my certified general license but not really sure how to go about obtaining the necessary commercial experience to do so. I do have local banks and lenders ready to work with me. I understand that there would be increased overhead but do you plan on working from home. I feel you on the banter though...this job can be very isolated sometimes and miss the appraisal and sports debates we'd have in the office.

I am looking into working for myself from my home office. Thinking of using QuickBooks, setting up an LLC, a separate bank account, getting an EIN, new email, E&O, home business insurance and then contacting all of my clients with my new business details. Currently, I am paying about $350 per month above and beyond all taxes & associated employment fees for office overhead.

 

[Russ Kitzberger]

This is part of the issue of training people, your existing clients may have come from your existing firm's reputation.

I am surprised you did not have a non-competitive agreement or at least a non-solicitation agreement. That is one that limited your ability to work for a period of time in the niche your firm works in or geographical location for a period of time. A non-solicitation agreement would prohibit poaching clients for a period of time, which is common in many industries; from cleaning to salons and professional firms.

If your firm was not professionally managing risk: client risk, and employee risk, they obviously don't understand their legal options and do not have a good business plan. If they/you did not have these agreements in place; then run from them and run with the clients. You can learn from this experience when you hire a trainee. The firm isn't going to be sustainable long-term if they train people that take their clients every 2-3 years, so you are better off leaving now rather than later when everyone else leaves and the clients are splintered amongst all the staff.

 

[nachocheesefries]

This is part of the issue of training people, your existing clients may have come from your existing firm's reputation.

I am surprised you did not have a non-competitive agreement or at least a non-solicitation agreement. That is one that limited your ability to work for a period of time in the niche your firm works in or geographical location for a period of time. A non-solicitation agreement would prohibit poaching clients for a period of time, which is common in many industries; from cleaning to salons and professional firms.

If your firm was not professionally managing risk: client risk, and employee risk, they obviously don't understand their legal options and do not have a good business plan. If they/you did not have these agreements in place; then run from them and run with the clients. You can learn from this experience when you hire a trainee. The firm isn't going to be sustainable long-term if they train people that take their clients every 2-3 years, so you are better off leaving now rather than later when everyone else leaves and the clients are splintered amongst all the staff.

I don't agree with this. If this is how you feel, training an apprentice is not suitable for you IMO. I have trained several apprentices and we just have a gentlemens agreement. Leave my customers alone and once licensed, I will help you build your practice out with your own clients. It has worked fine so far.

Frankly, none of my customers (that I actually care about) would hire a first year Appraiser nor are their panels easy to get on. You can't just call Farm Credit or local lenders and get put on their panel and start getting work. It takes year of experience and lots of relationship building over time.

I want my apprentices to be successful. Having my foot on the back of their neck runs contrary to why I train anyway. I do it to support the profession and support humanity when I see someone I think would make a great Appraiser...nothing more. Why would you take on an apprentice only to hobble them or make them feel like they owe you something?

Spread your wings and go make that paper boo boo! It feels good to help people.

 

[Russ Kitzberger]

I don't agree with this. If this is how you feel, training an apprentice is not suitable for you IMO. I have trained several apprentices and we just have a gentlemens agreement. Leave my customers alone and once licensed, I will help you build your practice out with your own clients. It has worked fine so far.

So you had the non-solicitation agreement, you just did not solidify it in writing?

You can't just call Farm Credit or local lenders and get put on their panel and start getting work. It takes year of experience and lots of relationship building over time.

Not sure about that everywhere, that particular lender wants appraisers to charge less per hour than the diesel and combine repair technicians' firm charges per hour in Ohio.

I don't agree with this. If this is how you feel, training an apprentice is not suitable for you IMO.

Can you point me to a professional company or any corporation that relies on:

a gentlemens agreement

to manage the expectation of their workforce?

If this is how you feel, running a professional company, in any other area of the country, is not suitable for you IMO.

Do you ask your clients for engagement agreements, or is that a handshake deal too?

It feels good to help people.

It does, that is why I do pro bono work and provide advise at no charge. When it comes to running a business, get it in writing, to ensure there is no misunderstanding between "gentlemen".

Do you hire non-binary or women persons?

 

[Russ Kitzberger]

I am looking into working for myself from my home office. Thinking of using QuickBooks, setting up an LLC, a separate bank account, getting an EIN, new email, E&O, home business insurance and then contacting all of my clients with my new business details. Currently, I am paying about $350 per month above and beyond all taxes & associated employment fees for office overhead.

Don't forget to sign up for workers' compensation, even if you are a sole proprietor or not mandated by your state; some clients may state you are required to have it. Also, if you do not have it, you may find your corporate vail status at risk.

Also; add hired and owned auto to your general business liability policy or add a business use rider to your personal policy.

Be sure to keep your articles or incorporation and LLC documents safe and compliant, attorney firns are great for this and to act as your statutory agent for service of process.

You are going to hear a lot of apprasiers, just like other small business owners infer that you don't need to professionally run the business. They seem to do this because they do not understand how to run a business and do not wish to have the overhead expenses.

Cutting corners might work for many people; until you need to support that you have a business, whether in a lawsuit or to a government entity. Then the real test of professional administration comes into play.

 

[nachocheesefries]

So you had the non-solicitation agreement, you just did not solidify it in writing?


Not sure about that everywhere, that particular lender wants appraisers to charge less per hour than the diesel and combine repair technicians' firm charges per hour in Ohio.


Can you point me to a professional company or any corporation that relies on:


to manage the expectation of their workforce?

If this is how you feel, running a professional company, in any other area of the country, is not suitable for you IMO.

Do you ask your clients for engagement agreements, or is that a handshake deal too?


It does, that is why I do pro bono work and provide advise at no charge. When it comes to running a business, get it in writing, to ensure there is no misunderstanding between "gentlemen".

Do you hire non-binary or women persons?

I don't need to go into it with you, but I have a lot of employees...like, a lot. I know what I am doing and it has always worked for me because I am honest and am not threaten by people I hire nor do I want them on my tit long term. I get more satisfaction out of watching them kill it on their own...sorta like watching a kid grow up and make the right decisions.

I am not wading into your non binary BS rabbit hole. WTF does that have to do with anything? I have a women that is starting her apprenticeship with me in September. If you are asking if I hire people I know I won't get along with or have blue hair or don't have the same values as me.....? The answer is a hard no.

I am relationships guy. My people are usually loyal to me. I understand my methods wouldn't work for everyone.

 

[Russ Kitzberger]

I don't need to go into it with you, but I have a lot of employees...like, a lot. I know what I am doing and it has always worked for me because I am honest and am not threaten by people I hire nor do I want them on my tit long term. I get more satisfaction out of watching them kill it on their own...sorta like watching a kid grow up and make the right decisions.

I am not wading into your non binary BS rabbit hole. WTF does that have to do with anything? I have a women that is starting her apprenticeship with me in September. If you are asking if I hire people I know I won't get along with or have blue hair or don't have the same values as me.....? The answer is a hard no.

I am relationships guy. My people are usually loyal to me. I understand my methods wouldn't work for everyone.

How do you handle your worker's comp with all those employees? I thought Missouri required you to have a policy when you have 5 employees, I couldn't find a policy under your company name.

or do you 1099 all your workers and pretend they are not supposed to be w2 employees. Do you have a handshake agreement that they are supposed to only work exclusively for you?

Did you know that there are 3 cornerstone appraisal's in your state? How do you all keep from confusing everyone? Is it normal in your state to have your attorneys OK a business name that is the same as others?

If someone takes all the shortcuts business is a lot more profitable for a time.

 

[nachocheesefries]

How do you handle your worker's comp with all those employees? I thought Missouri required you to have a policy when you have 5 employees, I couldn't find a policy under your company name.

or do you 1099 all your workers and pretend they are not supposed to be w2 employees. Do you have a handshake agreement that they are supposed to only work exclusively for you?

Did you know that there are 3 cornerstone appraisal's in your state? How do you all keep from confusing everyone? Is it normal in your state to have your attorneys OK a business name that is the same as others?

If someone takes all the shortcuts business is a lot more profitable for a time.

You might be crazy....

My appraisal practice is not the company with all the employees. I have a home care agency that has anywhere from 60-80 full time employees throughout the year (one of the largest in the entire state) and a farm operation as well. Not that it is any of your business, but they are all W2 employees with employment agreements. My work comp bill is more than most people make in an entire year.

I have been at this 18 looooonnnng years. What about your life makes you think I should take business advice from you? You are way over confident in the rubric you were taught. One size does NOT fit all. I have found that employment agreements do not serve my goals in my appraisal practice....which is merely to help others. I am not concerned with them "stealing" MY clients. You all think you OWN your clients as well as your apprentices, which is funny and demonstrates your own insecurity.

 

[Russ Kitzberger]

What about your life makes you think I should take business advice from you? You all think you OWN your clients as well as your apprentices, which is funny and demonstrates your own insecurity.

It sounds like the regard of your business acumen is so superior that you wouldn't take advice from me, regardless of the circumstances. Putting the agreement in writing is the exact opposite of insecurity, which is what you are trying to gaslight me with when you are the one that isn't providing the security of written agreements in one of your businesses.

My appraisal practice is not the company with all the employees. I have a home care agency that has anywhere from 60-80 full time employees throughout the year (one of the largest in the entire state) and a farm operation as well. Not that it is any of your business, but they are all W2 employees with employment agreements. My work comp bill is more than most people make in an entire year.

Is my understanding correct in that your other businesses support a profit margin that allows you to spend energy and expenses on employee agreements and the appraisal business does not? Am I understanding correctly that you do not run the employee agreements in the appraisal business in the same manner as your other businesses?

How would adding in the employee agreements harm your appraisal relationships?

 

[nachocheesefries]

It sounds like the regard of your business acumen is so superior that you wouldn't take advice from me, regardless of the circumstances. Putting the agreement in writing is the exact opposite of insecurity, which is what you are trying to gaslight me with when you are the one that isn't providing the security of written agreements in one of your businesses.




Is my understanding correct in that your other businesses support a profit margin that allows you to spend energy and expenses on employee agreements and the appraisal business does not? Am I understanding correctly that you do not run the employee agreements in the appraisal business in the same manner as your other businesses?

How would adding in the employee agreements harm your appraisal relationships?

What does gas light mean? Listen, all I am saying is...if what you are doing is producing a very predictable outcome (apprentices that leave you and make you jaded), perhaps look at it from another angle.

My goals in my appraisal practice are not the same goals I have for my other businesses. Except for a short time when I was starting out, I am not threatened by anyone in my realm and I feed off of those that are smarter than me. One of my apprentices was a retired psychiatrist and was one of the most influential people in my adult life. Sadly, he passed away unexpectedly before he finished his apprenticeship but I promise you, I learned more from him than vice versa. I think about him just about every day.

If what I am saying pisses you off, I just hope you take a second and reflect on your approach. Negative Nancy types typically don't motivate anyone, have very little influence over others and attract garbage. What is it that you want in life? Do you want to help others? Is it working?




I wanted to be able to fly private.... LOL