Appraising Properties With Jim Murrett #606

On Friday, September 28, the Norris Group proudly presents its 11th annual award-winning black tie event, I Survived Real Estate.  An incredible lineup of industry experts will join Bruce Norris to discuss perplexing industry trends, head-scratching legislation, tech disruption, and opportunities emerging for real estate professionals.  All proceeds from the event benefit Make A Wish and St. Jude Children's Research Hospital.  This event is not possible without the generous help of the following platinum partners: the San Diego Creative Real Estate Investors Association, InvestClub, Inland Empire Real Estate Investment Club, ThinkRealty, Wilson Investment Properties, Coach Fullerton, First Lending Solutions, PropertyRadar, the Apartment Owners Association, MVT Productions, and Realty411.  Visit www.isurvivedrealestate.com for event information, and see Amazon Prime or YouTube for past events.

Bruce Norris is joined this week by Jim Murrett. Jim has a MAI SRA designation, and he is from Hamburg, New York. He is the 2018 president of the Appraisal Institute. He will serve as immediate past president in 2019. He serves this year as chair of the organization’s Executive Committee and chairs its policy-setting board of directors. He has served on the Appraisal Institute’s National Board of Directors and Strategic Planning Committee, and he is chair of the Finance Committee. This is in addition to his many chapter roles, including president of the Upstate New York chapter. He has also been Treasurer and member of the board of directors of the International Center for Evaluation Certification, an affiliate of the Appraisal Institute. He received the 2014 Appraisal Institute Edward W. Adams, SRA, Outstanding Board Service Award. He also received the 2008 President Award, which is presented by the Upstate New York Chapter of the Appraisal Institute, for ongoing commitment, dedication, and service to the chapter and its profession.

Bruce and Jim discuss how long the Appraisal Institute has been serving the appraisal industry, when he got involved in the industry himself, changes that have taken place over the past decade and whether they have improved appraisals, appraisal management companies, AVM models, review appraisers compared to original appraisers, and much more on the real estate radio show and podcast.

The Norris Group would like to thank its Gold Sponsors for supporting I Survived Real Estate: Guaranteed Rate and Nathan Chabolla, In A Day Development, Inland Valley Association of Realtors, Jason Thorman with Coldwell Banker, Jennifer Buys Houses, Keystone CPA, LA South REIA, Las Brisas Escrow, Lawyers Title, Michael Ryan & Associates, New Western, NorcalREIA, NSDREI, Orange County Real Estate Investors, the Outspoken Investor, Pacific Premier Bank, Pasadena FIBI, Pilot Limousine, SJREI, Spinnaker Loans, South OC REIA, Tri-Counties Association of Realtors, uDirect IRA Services, White House Catering.  See www.isurvivedrealestate.com for event information.

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Notes and Self-Directed IRAs with Rick Solis #595

Bruce Norris is joined this week by Rick Solis. Rick is a retired appraiser, investor, teacher, and property manager. Primarily he is an investor now. He retired only two years ago when he was 48.

Bruce discusses with Rick his retirement accounts he had to invest with, Substantially Equal Periodic Payments, when he first learned about self-directed IRAs, his concerns about the timing of the next down cycle, the states in which he invested in notes, his first Florida loan, the unique thing Bruce had to deal with when working with the real estate there, and much more on the real estate radio show and podcast.

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Rick Solis and His Journey to Real Estate #594

Aaron and Bruce Norris are joined this week by Rick Solis. Rick is a retired appraiser, investor, teacher, and property manager. Primarily he is an investor now. He retired only two years ago when he was 48.

Aaron and Bruce discuss with Rick how he began his journey into real estate at a young age, his first house he bought as an investment, how the downturn affected him, his inventory building and how it has changed, whey he decided to exit sooner than when most people thought advantageous, and much more on the real estate radio show and podcast.

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Scott Robinson, President of the Appraisal Institute, Joins Bruce Norris on the Real Estate Radio Show #500

Bruce Norris is joined this week by Scott Robinson. Scott is the Appraisal Institute president and holds designations as MAI, SRA, and AIGRS in the appraisal world. He has been involved in appraising in North Carolina for most of his life and followed in the footsteps of his father who started the family business in 1960. He has been actively involved with the Appraisal Institute since joining as a candidate for the SRA designation in 1987. Including the 4-year term of the National Board of Directors and serving as chair Regional 5, he has served in all offices for the North Carolina chapter. He has been involved in the regional and national chapter since 1991. He served as national president-elect and vice president of the executive committee and was chair of the National Finance Committee in 2014. Since 2014, he has served as vice-president for World Association Evaluation Organization and has been a trustee for the International Property Management Standards Coalition since 2014 and serves on the organization’s executive committee.

Bruce and Scott discuss the duties of the Appraisal Institute president, worldwide access to information and how much it varies, the education required to become an appraiser, when it was first required for appraisers to have a license, the different levels of certification, areas of concern in the industry and much more on this week's Norris Group real estate radio show and podcast.

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Appraiser and Investor Rick Solis Joins Bruce Norris on the Real Estate Radio Show #495

Bruce Norris is joined this week by Rick Solis. Rick is a real estate investor, property manager, note buyer, options investor, real estate appraiser, and a good teacher.

Bruce and Rick discuss his typical tenants, how he determines a good tenant, what makes people decide to rent versus owning, why he chose to manage rental properties himself, and much more on this week's Norris Group real estate radio show and podcast.

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Appraiser/Investor Rick Solis Joins Bruce Norris on the Real Estate Radio Show #494

Bruce Norris is joined this week by Rick Solis. Rick is a real estate investor, property manager, note buyer, options investor, real estate appraiser, and a good teacher.

Bruce and Rick discuss the appraisal world, what inspired him to become involved in the business, the appraisal market during the 90s, the price difference between 2014-2015 and 2015-2016, construction in areas such as Hesperia, and much more on this week's Norris Group real estate radio show and podcast.  Full transcription coming Monday.

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M. Lance Coyle, President of the Appraisal Institute Joins Bruce Norris on the Real Estate Radio Show #449

On Friday, October 16, the Norris Group proudly presents its 8th annual award-winning black-tie event I Survived Real Estate. An incredible lineup of industry experts will join Bruce Norris to discuss perplexing industry trends, head-scratching legislation, and opportunities emerging for real estate professionals. Proceeds from the event benefit Make a Wish and St. Jude Children’s Research Hospital. This event could not have been possible without the generous help of the following platinum partners: HousingWire, PropertyRadar, the Apartment Owners Association, the San Diego Creative Real Estate Investors Association, San Jose Real Estate Investors Association, InvestClub for Women, MVT Productions, Wilson Investment Properties, and White House Catering. For event information, visit isurvivedrealestate.com.

Bruce Norris is joined this week by M. Lance Coyle. Mr. Coyle is the 2015 president of the Appraisal Institute. He will serve as immediate past president in 2016. He served this year as chair of the organization’s executive committee and chairs its policy setting board of directors. He has been involved in the real estate appraisal industry for 30 years and is a principal of Coyle Realty Advisors, a Dallas based real estate services firm engaged in investment property valuation, analysis research, and an expert in witness testimony and counseling. Bruce and Lance discuss the scope and membership of the Appraisal Institute, everything involved with the appraisal industry, changes in the appraisal process compared to ten years ago, market value, time valuation, de Minimis, collateral underwriting and its effect on the appraisal world, and much, much more on this week's Norris Group real estate radio show and podcast.

The Norris Group would like to thank its gold sponsors for supporting I Survived Real Estate: Adrenaline Athletics, Coachella Valley Real Estate Investors, Association, Coldwell Banker Town and Country, Elite Auctions, iMortgage, In a Day Development, Inland Valley Association of Realtors, IRA Services Trust Company, Jennifer Buys Houses, Keller Williams Corona, Keystone CPA, Las Brisas Escrow, LA SouthReia, Leivas Tax Wealth Management, New Western Acquisition, North California Real Estate Investors Association, North San Diego Real Estate Investors, Pilot Limousine, Orange County FIBI, Real Wealth Network, Realty411 Magazine, Rick and LeeAnne Rossiter, Southern California Chapter of the Appraisal Institute, Sonoca Corporation, Spinnaker Loans, Tri-Counties Association of Realtors, uDirect IRA Services, Westin South Coast Plaza, FIBI Pasadena, and Scott Whaley.

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Appraiser/Investor Rick Solis Joins Bruce Norris on the Real Estate Radio Show #422

Bruce Norris is joined again this week by Rick Solis. Rick is a fellow investor, property manager, property finder, and a good teacher. Bruce and Rick discuss how Rick got his start, his most influential educators, including Zig Ziglar and John Schaub, the scratch and dent method, property management lessons, his work with Andrea Esplin, and much, much more on this week's Norris Group real estate radio show and podcast.

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Appraiser/Investor Rick Solis Joins Bruce Norris on the Real Estate Radio Show #421

Bruce Norris is joined again this week by Rick Solis. Rick is a fellow investor, property manager, property finder, and a good teacher. Bruce and Rick discuss how he got his start in appraisals and financing, the appraisal world and how it has changed, concerns this has caused, values of properties in 2014, inventory and its effect on the softness of price, hedge funds and their influence in the area, and much, much more on this week's Norris Group real estate radio show and podcast.

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Rick Solis Joins Bruce Norris on the Real Estate Radio Show #330

Bruce Norris is joined this week by Rick Solis. Rick wears a lot of hats. He is an investor, an appraiser, hard money lender, a landlord, and on occasion he puts on his teacher’s hat. Bruce and Rick discuss appraisals and comparables that Rick does for the different areas, automatic appraisals and other review processes, price increases and price movement and what this holds in the future, inventory levels, and much more on this week's real estate radio show and podcast.

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Mike Cantu, Tony Alvarez, and Rick Solis Join Bruce Norris on the Real Estate Radio Show #300

For our 300th radio podcast, Bruce Norris is joined by three special guests: Rick Solis, Mike Cantu, and Tony Alvarez. Rick Solis is a very successful investor who flies a little bit below the radar. He is an appraiser, buys trust deeds, and buys properties. Tony Alvarez, who invented the radar, is the REO Mentor and is a very successful buyer and teacher. He works with buying and holding, buying and selling, does wholesaling, and buys currently out of the MLS. Mike Cantu is a very successful property buyer. He has been a developer, landlord, and trainer. He is specialized in talking to clients on the phone and never meeting a soul who he buys houses from. Bruce discusses with them home prices in the lower end markets as well as the varying cities, hedge funds, the competition in the market and private party deals Mike has put together, the mailers Rick sends out and the attitude of those receiving them, the difference today when promising returns, the inevitable price increases, and much more on this week's real estate radio show and podcast.

In other news, the fifth annual I Survived Real Estate will be meeting on October 19 this year. The Norris Group would like to thank their gold and platinum sponsors for helping to make this event possible.

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Mike Cantu, Tony Alvarez, and Rick Solis Join Bruce Norris on the Real Estate Radio Show #291

Today on the show are three special guests. Rick Solis is a very successful investor who flies a little bit below the radar. He is an appraiser, buys trust deeds, and buys properties.
Tony Alvarez, who invented the radar, is the REO Mentor and is a very successful buyer and teacher. He works with buying and holding, buying and selling, does wholesaling, and buys currently out of the MLS.
Mike Cantu is a very successful property buyer. He has been a developer, landlord, and trainer. He is specialized in talking to clients on the phone and never meeting a soul from whom he buys houses.
Bruce discusses with them the first time they were inspired to invest in real estate, how their children view real estate, the time they had their first good stretch of real estate, their toughest times in the job, their definition of wealthy, and much more on this week's real estate radio show and podcast. 

In other news, the fifth annual I Survived Real Estate will be meeting on October 19 this year.  The Norris Group would like to thank their gold and platinum sponsors for helping to make this event possible. 


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Steve Silva, Mike Novak-Smith, and Lance Martin Join Bruce Norris on the Real Estate Radio Show #290

Today on the show are three special guests. Lance Martin has been in the real estate business for 24 years as broker/owner of Coldwell Banker Pioneer Real Estate, which serves the Inland Empire. Lance is an expert in residential REO foreclosure sales and owns offices in several Southern California counties.
Mike Novak-Smith is not only one of the largest REO agents in the Inland Empire but also the nation. Mike is in the top 1% of all real estate agents nationwide and is experienced in REO short sales, bankruptcies, asset management, and negotiating. He also specializes in the Inland Empire as well.
Steve Silva owns several businesses including Market Point Realty and Las Brisas Escrow. Steve is an expert in residential REO sales as wells as being a real estate investor. 
Bruce discusses with them the status of appraisers in the current market, cash buyers, the people backed by Wall Street money and if they affect their businesses, the new sense of entitlement in this country, REO listings and short sales, eminent domain, and much more on this week's real estate radio show and podcast.

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Appraiser and Investor Rick Solis #177

This week Bruce Norris is joined by California real estate investor and appraiser, Rick Solis.

Rick and Bruce talk more about investing from 2001-2007, what was working and what was not, different skill sets that made a big difference, what Rick did in a downturn, Bruce Norris and the auction business, what Rick would have done differently in a boom, how Rick is buying properties now, competing with other investors, bad investors ruining it for the rest of us, and much more.

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Appraiser and Investor Rick Solis #176

This week Bruce Norris is joined by California real estate investor and appraiser, Rick Solis.

Rick has been in the business since he was 20 years old. Rick does most of the appraisals for The Norris Group's hard money loan division and also helps train investors at The Norris Group's REO Boot Camp.

Bruce and Rick discuss the changes in the appraisal industry since Rick started, why he likes working with hard money lenders, the misconception of appraising being easy because of systems like Zillow, cost-basis appraisals, different property features that add value and those that don't, and much more. The full transcription can be found in the archives at thenorrisgroup.com

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Appraiser and Investor Rick Solis #105

Bruce Norris is joined this week once again by appraiser and investor, Rick Solis.

Bruce and Rick start by talking about market value. Rick says market value is what a ready, willing, able, and knowledgeable buyer is willing to pay for a property. Bruce asks if this definition is being held up with lenders in today’s market. Rick says that lenders are not. Bruce talks about how real estate auctions do not reflect true market value compared to fixed inventory. The majority of the inventory needs fixing and must be sold in a certain time frame.

Rick says the market is very different from the 90s. In the 90s, Rick says that there used to be a box that said “declining market”. If that box was checked, the deal wouldn’t go through. Now, the lenders will do those transactions but lenders require more comparables. It becomes difficult to find similar inventory. The banks will want to see the appraiser adjust for the market. Appraisals used to be good for 6 months. With a declining market, comparables need to be 60 days or less from the day of funding. Lenders want at least 2, preferable 3, comps within 60 days of funding.

Bruce asks how long appraisals are accurate in today’s market. In some areas, Rick says prices continue to drop quickly so not long. Every area is different. Bruce says in the last 60 days, appraisals are becoming more of an issue. Bruce talks about a recent example of an issue with an appraisal on a property with multiple offers. Bruce asks Rick what will happen if lenders don’t change their stance on valuing properties and creating comps that reflect perfect condition.

Bruce heard recently that lenders are considering doing refinances without appraisals because of the price declines which Rick has heard as well. He thinks that’s an interesting way to solve the issue. Rick says they keep throwing whatever they can at the issue. Rick says they did the same type of things during the Great Depression. Bruce talks about similarities with policies from the Great Depression and now.

Bruce asks if before and after pictures on properties are helpful. Rick says videotaping properties before and after would be a great help but if there are too many repairs they may want to see permits. He says to document all multiple offer situations.

Bruce and Rick then start talking about the principle of substitution. Bruce says there’s a short supply of good inventory. There’s a glut of inventory that needs fixing. Bruce feels bad for appraisers who have to fight for real prices and they have to be careful. Banks are only looking at pictures and don’t really understand what’s happening in the area. Rick takes many more pictures than is required to show banks why prices are where they are at.

Bruce asks about arms-length transactions. Bruce asks about what would happen if The Norris Group carried its own paper and created higher comps. He asks if that would be a conflict because of arms-length transaction rules. Rick discusses the potential issues and uses the example of builders.

Bruce asks what percentage of sales has concessions in the current market. Rick says almost 100% of transactions on properties that are on the market for two weeks or more have concessions although it’s not always easy to figure out what those concessions are. Appraisers don’t always know the concessions.

Bruce asks what percentage is allowed for condition in appraisals. Rick says condition can be about 10%. If you adjust more, it can become and issue. It becomes easy with comparables but more difficult if the data isn’t there to support line item adjustments for over 10%.

If the appraisal comes in wrong in the eyes of the bank, you get blacklisted and there’s a possibility of not getting paid. Rick says review appraisals were not as common when the market was going up. Some did but they were way more lenient. Review appraisers typically do a desk review and never go see the property. They are looking at online information. These review appraisers are typically hired independent contractors.

Bruce asks Rick what he would like to see changed. Rick says not having the lender paying for the appraisal would be better. That way there would be no pressure and more honest appraisals could take place.

Next week is Christopher Thornberg with Beacon Economics.

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