Table shows how to present rental income data to a lender, broker or appraiser.


 Attached is an example of how to organize and present rental income data to a lender, broker or appraiser in the process of ordering an appraisal or listing a property for sale.

In my (35) years of appraising commercial real estate appraisal experience, I have seldom been provided with the required information in a clear and concise format.

Please note that rents are without sales tax.  To remove sales tax from a given rent, say a $1,000 / month rent, simply divide the rent by the sales tax, for example, if the sale tax is 7%, dividing by the monthly rent of $1,000 by 1.07 gives you $934.58.

This is the monthly rental amount to be shown in the table.

The website for Central Florida Appraisal Consultants (CFAC) is https://www.cfappraisal.com/



Comments

Post a Comment

Popular posts from this blog

Image
  USPAP, What Realtors & Brokers Must Know The Uniform Standards of Professional Appraisal Practice (USPAP) governs the appraisal industry and requires  appraisers to follow it's rules.  Enforcement in Florida is promulgated through the DBPR, the Department of Business and Professional Regulation. Since transactions of real estate usually involve an appraisal , Realtors, Brokers and property owners should have some knowledge of USPAP when dealing with appraisers. Real Estate Appraisers in Florida are licensed as either a " State Certified Residential Real Estate Appraiser" or as  a " State Certified General Real Estate Appraiser". Those with a "Residential" license are restricted to the appraisal of residential property (up to four units) with no dollar value limit.  See Florida Statutes FS 475, Part II. The "General" license has no limitations and allows the appraisal of both residential and commercial properties.   "Client"
Read more
Image
Subdivision & Sellout Property Appraisal Documents Needed PSP , Preliminary Site Plan Approved, at a minimum. This document shows the layout of lots, streets, common areas, retention, etc.  A civil engineering firm will create your plat and submit it to the local planning department for approval.  The first step in the approval process is Preliminary Site Plan (PSP) approval. Purchase Contact Shows price paid for “Blanks”, an industry term used to describe raw land approved for subdivision development. Infrastructure   Cost The cost to construct underground utilities, roads, accel / decel lanes, etc Ratio Analysis as a "Road Map"  Take the average retail price of a finished home, multiply  by 35% and you get the "indicated"  retail  value of each lot.   Ratio analysis give you a "guide" to go by for a quick check of economic feasibility and for "comp selection". Example (Assume) 100 lots in a subdivision with homes that sell for an ave
Read more