In 2008, Andresa Guidelli moved to Philadelphia from Brazil. It was a big adjustment. It seems someone neglected to tell her that, despite the title of the show, it’s not always sunny in Philadelphia – especially in January. However, he has figured out how to not only survive the cold but also thrive in the city of brotherly love!
As many others who listen to the BiggerPockets podcast can attest, rich Dad Poor Dad ,rdpd) has had a profound impact on so many people. Andresa counts herself as one of the fold. after reading rdpd, Andressa became very interested in real estate and eventually began attending some of the courses Rich Dad had available. And to paraphrase: The rest is history.
How an Appellate Appraisal Value Amounts to an Additional $100K+
Andresa began rehabbing with a single family and converted into new construction. Eventually, he ended up doing short- and long-term rentals, which is how we landed our best deal ever.
deal finding
While inspecting one of her projects, Andresa notices some garbage bags and furniture in a nearby building, leading her to believe that something is amiss with the property. Ever since Andresa started her sales career going door to door, she’s built up some thick skin and decided to knock on a few more doors to get information on properties.
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She was able to find out from neighbors that the property was an estate sale that was going through probate, so she reached out to the executor for more information—and eventually made an offer to buy.
transaction financing
He ended up buying $230,000, putting another $200,000 into renovations. It financed the deal with short-term financing for 80 percent of the purchase and 100 percent of the renovation.
Once the renovations were complete and the property stabilized, Andresa decided to take out a long-term loan on the property, which included appraising the property. When he received the appraisal, the property was valued at $560,000, meaning he had built up $130,000 in equity.
knowing its contents—and proving it
Most investors will be happy with that news! But not Andresa. He had done his research before buying and felt confident that the property should be worth more.
Andresa decided to dig into the evaluation and found a few key items:
- The comps that were being used were all zoned single family and his was a triplex, so the zoning was off.
- The properties that were being appraised using rent were using estimated rent values and not actuals.
- Many of the properties were too far away from the subject property to be considered comp.
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One of my favorite sayings is, “You’re the only one saying no unless you ask.”
And apparently Andresa subscribes to that thought too! She took her findings to a lender to see if they would increase in value. They told him he’d have to get the appraiser to sign it—and that’s what he did.
He took their findings and made his case for an increased value, eventually receiving notice back that they had appraised it for $675,000.
A little research and a lot of arguing resulted in a price increase of $115,000!
Moral of the story: Don’t be afraid to ask. You can leave $115,000 on the table.
Have you ever received an appraisal that you thought was low? did you fight it?
Share your experience in the comment section.
Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
