Real estate builds wealth like nothing else. Prudhomme Real Estate & Appraisal Group specializes in the buying, selling, leasing and renovating process to maximize value and profitability potential. Working with clients in New Orleans and the surrounding areas. Call us for a free consultation.

INVESTORS

Every time a distressed property is acquired and renovated it not only provides potential buyers an opportunity for improved housing, it also makes a positive impact on the market, improving its value and marketability. Whether it be a fix-and- flip, new construction or vacant land, consulting with an appraiser can help investors make informed decisions. As an appraiser, analyzing property values and market conditions is my specialty. As a real estate agent, I can also assist in buying, selling and leasing your investment property. I want to be your trusted advisor on your investor journey.

Fix-and- Flip
When making fix-and- flip lending decisions, collateral, or the value of the property before and after renovations plays a dominant role in determining whether a loan is approved. For this reason, investors need to understand how fix-and- flip lenders approach valuations, what to expect during the appraisal process and what some of the red flags are that can delay the decision or even kill a deal.
Fix-and flip appraisals are more complicated than standard residential mortgage appraisals. They are significantly broader in scope than a traditional appraisal. It requires the appraiser to produce two valuations: As Is value is based on the current state of the property and As Repaired value (ARV) the post renovation value.

In addition to the valuations, the appraiser is also required to evaluate the investor’s renovation budget. In order to produce a realistic ARV, the appraiser needs to be able to understand the investor’s vision for the project and also have the requisite construction knowledge to determine whether or not the project is viable, based on the proposed budget and anticipated end result. Reviewing the budget is a crucial step. It is up to the appraiser to make a judgement call as to whether the proposed budget is realistic, can cover planned improvements and will result in the expected increase in value.  The average fix-and-flip appraisal can be completed in 7 to 10 days.

How can investors improve their odds?

• Be as thorough as possible with plans and specifications. Be sure to note if higher cost, custom materials are being installed.
• If there is a change in the floorplan, note that there will be an increase in square footage.
• Elaborate on site improvements, such as additional parking, a larger driveway, gated parking or a fence.

 Specializing in investment properties, whether it be a fix-and-flip or a second home, Jeanne can help you assess the viability of a project. Completing an As Is-As Repaired appraisal for your property can assist you in establishing a budget. Her knowledge of the various neighborhoods of New Orleans and the surrounding areas equip her to give a full market consultation.

As an agent, Jeanne can accurately guide you through the buying, selling and leasing process. With her extensive background in sales combined with six years of experience appraising residential properties, you can feel confident buying, selling and leasing  investment property with Jeanne.

CALL JEANNE TO DISCUSS YOUR INVESTMENT OPPORTUNITIES