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Structuring A Partnership?

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Heathman914

Freshman Member
Joined
Feb 25, 2008
Professional Status
General Public
State
Florida
Hi,

I’m newly certified and considering venturing out on my own with the possibility of a partnership with another certified. I was curious if it is possible to structure 2 separate entities and pass surplus work back and forth? Can your license be hung under multiple entities or accept work from multiple entities without the entities being classified as AMCs? I would like to get my own work and run my own business with the opportunity for another certified to help in the event I cannot handle the workload and vice versa. I would also like to continue to receive work from my current employer despite setting up my own company. Any opinions or advice are greatly appreciated
 

timk

Freshman Member
Joined
Jan 17, 2018
Professional Status
Certified General Appraiser
State
Kansas
Hi,

I’m newly certified and considering venturing out on my own with the possibility of a partnership with another certified. I was curious if it is possible to structure 2 separate entities and pass surplus work back and forth? Can your license be hung under multiple entities or accept work from multiple entities without the entities being classified as AMCs? I would like to get my own work and run my own business with the opportunity for another certified to help in the event I cannot handle the workload and vice versa. I would also like to continue to receive work from my current employer despite setting up my own company. Any opinions or advice are greatly appreciated.
 

timk

Freshman Member
Joined
Jan 17, 2018
Professional Status
Certified General Appraiser
State
Kansas
It can be smart to share office space and other resources but I think it is harder to share work assignments. I know three independent appraisers who have formed their own companies but share office space, administrative staff and other items. Each one maintains their own LLC and pays their share in the expenses. They also share potential work flow having made arrangements with their clients in advance. Licenses or certifications can not be shared. As an employer, I would highly recommend that you communicate your intentions about working independently with your current boss so that there is no misunderstanding. The appraising industry can be a small world and you hate to burn any bridges. Good luck.
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I would highly recommend that you communicate your intentions about working independently with your current boss so that there is no misunderstanding. The appraising industry can be a small world and you hate to burn any bridges. Good luck.

Word.
 

ockyappraiser

Senior Member
Joined
Sep 26, 2002
Professional Status
Certified Residential Appraiser
State
Kentucky
YOU have the license, not the partnership. When the orders come they have YOUR name on them, not the company's name. Every client I deal with has verbiage in their letters of engagement that the order can not assigned to a different appraiser then on the order.
 

Salty

Member
Joined
Mar 12, 2010
Professional Status
Certified Residential Appraiser
State
Pennsylvania
In my opinion it would be more difficult to operate as a partnership if you are accepting mostly AMC work for reasons already stated. AMC's tend to work at the individual appraiser level not the company level. Not all, but I think most do. Determining where most of your work will come from may dictate the structure. Hopefully, most of your work will be non-AMC that way you can have more control over your business.

Lets say you get an order from Clear Crappy AMC, Inc. They send it to you. If you can't do it it can be a headache to have to move it to another appraiser. Have to call Crappy to switch the appraiser, Crappy wants the other appraisers drivers license.etc. Then who is the check made out to?? The individual appraiser or 1 of the 2 companies within the partnership. Man and wait till tax time, your days of turbotax may be over. Time to pay the accountant.
 
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Doug in NC

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
The dilemma of taking on more work to share with other appraisers seems to be a nearly impossible one to overcome. I've considered a partnership, but it could be a disaster to untangle if it doesn't work out. I've also looked at creating a franchise-type system, but you're in for likely over $20K minimum before you earn $1 of new income. If you hire a sub-contractor, there is nothing to stand between them taking away clients you introduce them to (most authorities agree that non-compete contracts are worthless in our industry). Now I intimately understand why appraisal companies have remained family businesses for generations.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
with the possibility of a partnership with another certified.
Partnerships happen because it is a big step to start a company. My experience is few work as well as simply taking the risk and going on your own.
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I heard the owner of a certain historic roadhouse in Lake Hughes talking about having a partner or 2 is his 10+ years tenure there recently.

At first it was good, but after a while they think they know a thing or 2 and want to change things up their way, was the gist of it. :leeann2:
Seems to me he has done a great job with it.

Me, I don't need no stinking partners. I need ones that smell good. :leeann:
 
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