ASK MIKE MONDAYS - I am under contract and buying an apartment building. I’ve been contacted by the appraiser; what do I need to know and give them?

A lender needs to understand the value of the collateral. Even though you paid for the appraisal, the appraiser is hired and works for the bank. They will not discuss value with the buyer until after they have completed their final report. If you meet the appraiser at the property and you mention that you are going to do some specific rehab; the appraiser will more than likely add that into their report. So…be careful in speaking to the appraiser, if you haven’t confirmed those improvements. The appraiser is going to need the most updated T12 and a current rent roll. They may want to see your PROFORMA on the new property taxes and other expenses and make sure that it looks reasonable.