Well, I knew that day was going to come. I didn't know exactly what it was going to be, but I knew that the grunt work would be there, and I would be expected to do it. That's okay I guess, but there seemed to be an awful lot of it, all at once.
Nothing like being the low man on the totem pole! First it was running errands and getting copies made. At least I got some fresh air. Then I would deliver our clients' reports. After that it was emptying the trash, that wasn't terrible either. Believe it or not, the task that I hate doing the most is having to call people and convince them to give me information that they have no incentive to give me. Many times people are rude (and in some cases, very uneducated.)
If you are looking to get into this field, don't think that it is all going to be a bed of roses. Also, don't think that you are going to make a lot of money (at first.) In most cases, it is actually costing your mentor to keep you around, but I think you'll find that it is worth it. We just have to make a few years worth of sacrifices to make it happen.
I had a really hard time convincing the people closest to me that I would actually have to take a large pay cut to pursue this career. Poeple sometimes have a hard time dealing with the fact that a person with a college degree and 15 years of work experience could actually make $10.00 per hour. I had to convince people to think of it as an internship or an apprenticeship, in the end the cut will be worth it and I will end up making a lot more money and being happier in the long run.
I've had some concerns. I have had to provide my own health insurance and retirement. I'm driving an eight year old car that I haven't made a payment on in years. I'm making very little money and if that car craps out I could be screwed. In the end, I'm just going to try to have faith that things are going to work out.
Next post, On The Road Again
Showing posts with label commercial real estate. Show all posts
Showing posts with label commercial real estate. Show all posts
Tuesday, March 25, 2008
Monday, March 24, 2008
The Experience of Travel
The first time I traveled for work it was about 100 miles away. My travel, research and photographing was a full day assigment. I had always had a job with no flexibility, where I was stuck in an office all day long. There was no freedom, no fresh air, a miserable boss, and no flexibility!
Getting out on the road to a city I had never had occasion to go to was very exciting! I made a map of my journey so I knew what order to visit properties in, grabbed my iPod, fired up my GPS and got going. The weather was beautiful, the drive was beautiful and I was so excited to be doing something different. I couldn't believe I was being paid to do this job, but I was!
I had some wonderful experiences that felt very fulfilling. I will admit that on some occasions this is a lonely job. Luckily my employer is okay with a significant other or pet traveling with me although I really don't have much opportunity to do that. I did take my dog one weekend when I went 15 miles from my house to explore a land sale. I was in a position before that was very social. I talked to probably 50 or more people in a day, it was a very difficult adjustment to not be seeing or talking to this many people anymore.
We'll see if I can continue to hack it!
Next up, Sh*t Work!
Getting out on the road to a city I had never had occasion to go to was very exciting! I made a map of my journey so I knew what order to visit properties in, grabbed my iPod, fired up my GPS and got going. The weather was beautiful, the drive was beautiful and I was so excited to be doing something different. I couldn't believe I was being paid to do this job, but I was!
I had some wonderful experiences that felt very fulfilling. I will admit that on some occasions this is a lonely job. Luckily my employer is okay with a significant other or pet traveling with me although I really don't have much opportunity to do that. I did take my dog one weekend when I went 15 miles from my house to explore a land sale. I was in a position before that was very social. I talked to probably 50 or more people in a day, it was a very difficult adjustment to not be seeing or talking to this many people anymore.
We'll see if I can continue to hack it!
Next up, Sh*t Work!
Sunday, March 23, 2008
Later In That First Week
That first week I learned about my very first assignment. I was to work on a rent comparability study. It is exactly as it sounds, an assignment to research market rents in a certain area. Usually the study is commissioned when a buyer, seller or managment company wants to see where they stack up compared to other market rate properties in the area.
A rent comp study does require a decent amount of research. It is crucial to touch base with managers and owners of the market area to find out what their asking rents are and what is included when a tenant pays this rent. It is very important to compare apples to apples, so you need to make adjustments to compensate for amenities that the subject or comparables have.
One of the first major rules you will learn in classes is that in your grid you never adjust the subject. You always adjust the comparables. If your subject property is $900/mo. but includes heat, hot water and a parking garage and your comparables are $700/mo. but all utilities are paid by the tenant you must make an adjustment in that comparable because the subject property would be superior. As the appraiser, you may decide that heat and hot water are worth $100/mo., and garage parking might be worth $80.00/mo. you would add these to the rent of the comparable to make it more comparable to the subject.
What people consider the worth of, say, a washer and dryer in the unit will very by market, and it is the appraiser's job to figure all this out by asking questions of various property managers and owners. You can conduct a paired analysis to see how much higher a tenant will pay in a certain area to have this amenity. It is also important to see the properties, both the subject and the comparables, so early in my second week I was on the road. I traveled to the market, photographed our subject and talked to the property manager and then moved on to the comparables. The purpose of this is to see, not only the comparable, but the neighborhood that the comparable is listed in.
Talking to locals who are aware of the market, and seeing all the properties give you a clear picture of the market area. Since it was my first week, I didn't make any adjustments, but did do the research and photographing of the comparables. It was an interesting experience!
Coming up next, The Experience of Travel
A rent comp study does require a decent amount of research. It is crucial to touch base with managers and owners of the market area to find out what their asking rents are and what is included when a tenant pays this rent. It is very important to compare apples to apples, so you need to make adjustments to compensate for amenities that the subject or comparables have.
One of the first major rules you will learn in classes is that in your grid you never adjust the subject. You always adjust the comparables. If your subject property is $900/mo. but includes heat, hot water and a parking garage and your comparables are $700/mo. but all utilities are paid by the tenant you must make an adjustment in that comparable because the subject property would be superior. As the appraiser, you may decide that heat and hot water are worth $100/mo., and garage parking might be worth $80.00/mo. you would add these to the rent of the comparable to make it more comparable to the subject.
What people consider the worth of, say, a washer and dryer in the unit will very by market, and it is the appraiser's job to figure all this out by asking questions of various property managers and owners. You can conduct a paired analysis to see how much higher a tenant will pay in a certain area to have this amenity. It is also important to see the properties, both the subject and the comparables, so early in my second week I was on the road. I traveled to the market, photographed our subject and talked to the property manager and then moved on to the comparables. The purpose of this is to see, not only the comparable, but the neighborhood that the comparable is listed in.
Talking to locals who are aware of the market, and seeing all the properties give you a clear picture of the market area. Since it was my first week, I didn't make any adjustments, but did do the research and photographing of the comparables. It was an interesting experience!
Coming up next, The Experience of Travel
Saturday, March 22, 2008
The Very Beginning
When I first began my journey, I really didn't know what to expect. What made it more difficult is the fact that I had been in my former position for 14 years. I knew my old job inside and out and could have done it in my sleep, and now here I was, trying to begin at the beginning and learn something new.
My first days were hectic. I had my very first exposure to my local multiple listing service or MLS and found it to be a very interesting tool. In fact, it is addictive! I had never seen it before, because it is a database for real estate professionals only, and we had none of those in my family. As your local MLS is good for residential and some commercial properties, I also learned how to use a product called CoStar to find commercial comparables and listings for sale. In CoStar, you can find information on everything to a billion dollar portfolio sale of multi-family properties, to a little commercially zoned lot for sale. I am not sure how much this service costs the firm that I am with, but it is a very valuable tool. They do offer a demostration of the product on their website.
If you don't have the highest skills in computer literacy, don't worry, your local MLS and CoStar are very similar to using Google. If you can use Google, or any other search engine for that matter, you can learn these two products.
Another thing that I did on my first day was read through some completed reports. They were a little intimidating at first: long narrative reports that seemed to go on forever. I had some composing and editing experience, but this was mostly smaller newsletters and websites. I also helped proofread a book for a friend a few years prior. This was going to be like working on a book every week. After you dive in and get used to it though, it is pretty easy and straightforward. Of course, by choosing to work in this field, the information is interesting to me. This was helpful for me too to learn the language that is used in these reports.
I also read through some residential reports, personally, I have worked on four residentials now, and have started a fifth. Residential is interesting, because we can all relate to it, but the forms are boring. As far as being able to complete an assignment, of course, residential is the easiest. I suppose appraisers who only do residential work can do three of those in a day if they really work at it. Any more than that and I might question their thoroughness in finishing the job.
You will learn quicky, as I did, that every job is different. One thing that I really like about my position now, in contrast to my old career, is that every day is different. There is always something exciting going on, whereas I knew my old job so well that I would practically fall asleep at my desk.
Coming up next, Later In That First Week
My first days were hectic. I had my very first exposure to my local multiple listing service or MLS and found it to be a very interesting tool. In fact, it is addictive! I had never seen it before, because it is a database for real estate professionals only, and we had none of those in my family. As your local MLS is good for residential and some commercial properties, I also learned how to use a product called CoStar to find commercial comparables and listings for sale. In CoStar, you can find information on everything to a billion dollar portfolio sale of multi-family properties, to a little commercially zoned lot for sale. I am not sure how much this service costs the firm that I am with, but it is a very valuable tool. They do offer a demostration of the product on their website.
If you don't have the highest skills in computer literacy, don't worry, your local MLS and CoStar are very similar to using Google. If you can use Google, or any other search engine for that matter, you can learn these two products.
Another thing that I did on my first day was read through some completed reports. They were a little intimidating at first: long narrative reports that seemed to go on forever. I had some composing and editing experience, but this was mostly smaller newsletters and websites. I also helped proofread a book for a friend a few years prior. This was going to be like working on a book every week. After you dive in and get used to it though, it is pretty easy and straightforward. Of course, by choosing to work in this field, the information is interesting to me. This was helpful for me too to learn the language that is used in these reports.
I also read through some residential reports, personally, I have worked on four residentials now, and have started a fifth. Residential is interesting, because we can all relate to it, but the forms are boring. As far as being able to complete an assignment, of course, residential is the easiest. I suppose appraisers who only do residential work can do three of those in a day if they really work at it. Any more than that and I might question their thoroughness in finishing the job.
You will learn quicky, as I did, that every job is different. One thing that I really like about my position now, in contrast to my old career, is that every day is different. There is always something exciting going on, whereas I knew my old job so well that I would practically fall asleep at my desk.
Coming up next, Later In That First Week
Preparing For Your Interview(s)
One thing I picked up on very quickly is that most appraisers will be just as uncomfortable interviewing you, as you will be uncomfortable being interviewed. These aren't corporate people who do a lot of hiring, firing or catering to personnel issues-- they are businessmen/women; their time is money and they need help.
I guess my advice to you is this, don't spend huge amounts of time figuring out what you are going to say when the interviewer asks "Where do you see yourself in ten years?" I was never asked that question. I'm not saying don't prepare, but don't waste time on it either.
My first piece of advice would be to know your interviewer and their specialties. What kinds of jobs do they take on? Will they take on anything to stay busy? There are some interesting specialties out there, I interviewed with one company that did mostly litigation work; ad valorem tax appraisals and condemnation. Know what they specialize in and acquaint yourself with the issues involved.
Also, learn about any desigations that your interviewer may have. Many appraisers have lot of initials after their name. Look into the work and studies that were involved to earn these designations.
Some questions you may want to ask during your interview:
1. Does your firm do mostly narrative reports or form reports? Most commercial firms do narrative reports. Writing and proofreading skills will be good skills to highlight for this.
2. How much guidance would I have initially. Be leary of someone who will throw you to the wolves right away.
3. What tools do I need to have? Some firms, like mine, have anything you could possibly need. I don't even need my own camera or GPS, it just so happens that I do have those items.
4. Do I need to bring my own business?
5. Do I need to bring my own Errors and Omissions Insurance (otherwise known as E & O)
6. Does your firm pay or reimburse for education?
You can think of other questions too, just try to keep the dialogue going, you'll do great. It's mostly a personality issue. Most appraisers love to talk about real estate and appraisal business, if you can keep conversation going it will show them that you are knowledgable, well spoken and have a good personality.
Either before your interview or before contacting a firm check with your state licensing board to make sure there aren't disciplinary actions on your interviewer's record, avoid this at all cost. Another helpful tip would be to e-mail a few trusted friends from the appraisers forum or from your local AI chapter to get opinions on your interviewer. It is an unfortunate truth that some people don't play by the rules.
A very wise teacher gave me some advice that I followed through the entire process. . .
"Who you do your trainee hours with will stick with you for your entire career. Their career and their practices are your career and practices. Choose very wisely."
Coming up next, The Very Beginning
I guess my advice to you is this, don't spend huge amounts of time figuring out what you are going to say when the interviewer asks "Where do you see yourself in ten years?" I was never asked that question. I'm not saying don't prepare, but don't waste time on it either.
My first piece of advice would be to know your interviewer and their specialties. What kinds of jobs do they take on? Will they take on anything to stay busy? There are some interesting specialties out there, I interviewed with one company that did mostly litigation work; ad valorem tax appraisals and condemnation. Know what they specialize in and acquaint yourself with the issues involved.
Also, learn about any desigations that your interviewer may have. Many appraisers have lot of initials after their name. Look into the work and studies that were involved to earn these designations.
Some questions you may want to ask during your interview:
1. Does your firm do mostly narrative reports or form reports? Most commercial firms do narrative reports. Writing and proofreading skills will be good skills to highlight for this.
2. How much guidance would I have initially. Be leary of someone who will throw you to the wolves right away.
3. What tools do I need to have? Some firms, like mine, have anything you could possibly need. I don't even need my own camera or GPS, it just so happens that I do have those items.
4. Do I need to bring my own business?
5. Do I need to bring my own Errors and Omissions Insurance (otherwise known as E & O)
6. Does your firm pay or reimburse for education?
You can think of other questions too, just try to keep the dialogue going, you'll do great. It's mostly a personality issue. Most appraisers love to talk about real estate and appraisal business, if you can keep conversation going it will show them that you are knowledgable, well spoken and have a good personality.
Either before your interview or before contacting a firm check with your state licensing board to make sure there aren't disciplinary actions on your interviewer's record, avoid this at all cost. Another helpful tip would be to e-mail a few trusted friends from the appraisers forum or from your local AI chapter to get opinions on your interviewer. It is an unfortunate truth that some people don't play by the rules.
A very wise teacher gave me some advice that I followed through the entire process. . .
"Who you do your trainee hours with will stick with you for your entire career. Their career and their practices are your career and practices. Choose very wisely."
Coming up next, The Very Beginning
Friday, March 21, 2008
Tips For Finding A Mentor
If you are getting into this business one of the most frustrating issues is finding a mentor. Then, if you are lucky enough to find a mentor, you have to find one who is trustworthy.
I finished my classes in June of 2007. I didn't actively start looking for a mentor until I finished my classes. USPAP was my last course and I wanted to be able to say that I had completed it. Over the summer of 2007, I had three full-time job offers in commercial appraisal firms. I chose one, and began my journey in October.
Here are some tips that I can pass on to you from my search:
1. If you take Appraisal Institute courses, make sure that the coordinator for your chapter has your resume.
I had five interviews and two offers from the chapter coordinator forwarding my resume to people who were actively looking for trainees. PS: I wasn't a member of AI at the time, I would say that most will gladly accept your resume whether you are a member or not.
2. Make sure your resume is spotless.
I don't want to offend anyone by saying this, check to make sure names are correct, check for typos and mis-spellings. I reviewed resumes for years, you would be surprised at how many well educated people never proofread their resumes. If I found typos or mis-spellings, it was thrown in the trash immediately. My current employer also followed this criteria.
You must be detail oriented in this business, prove it with your resume.
3. Emphasize your pertinent skills.
Any real estate experience, research experience, writing experience etc. Do yourself a favor and visit your local courthouse (or check for court records online.) Get acquainted with the process involved in searching for deeds, mortgages, tax maps, etc. You will be surprised how much of this can be done online, and you can emphasize these skills on your resume.
4. Know if you would like to specialize.
This may come later in your career, but if you know that you want to specialize in residential appraising, multi-family housing, health care facilities, hospitality establishments, etc. reasearch companies that specialize in these types of appraisals. There are some interesting niches out there. Think outside the box!
5. Join AppraisersForum.com.
There is a lot of experience on that forum. People who have been working in this field for years. Everyone is kind and respectful and they want to be helpful to you. Not only is it a great way to meet people it is a terrific opportunity to get questions answered. They have a newbe/appraiser wannabe forum and also a jobs forum.
6. Appraisal Institute Chapter/Dinner Meetings.
Personally, I never did this, but everyone in the field recommends that if you are interested in joining the Appraisal Institute that you visit your local chapter and attend dinner meetings. It is a good way to meet many appraisers under one roof. It could be that they are not looking for a trainee, but they may know someone who is, since they are able to talk to you and see you, you have a better chance of getting your resume forwarded.
7. Find Names of Appraisers In Your Area.
This is pretty easy. You can look in the yellow pages and on the internet. I wanted to find someone with an MAI designation, so if you click on the link and go to the Appraisal Institute's website you can search for appraisers by area. Print the list and start sending out resumes or making phone calls.
8. Keep A Paper Trail.
I kept track of every company I sent resumes and cover letters to. I would suggest making a subfolder for each or naming each specifically so you know who got which letter and resume. For some firms I tailored my resume to them and wanted to know exactly what the resume looked like. Make a simple spreadsheet of who you sent resumes to and what day you mailed them.
9. Read, Read, Read.
Read your text books, read everything and anything you can get your hands on, you'll learn some valuable information and when you do get that interview you'll be able to have conversations about issues in the field.
Good luck!
Next, Preparing For Your Interview(s)
I finished my classes in June of 2007. I didn't actively start looking for a mentor until I finished my classes. USPAP was my last course and I wanted to be able to say that I had completed it. Over the summer of 2007, I had three full-time job offers in commercial appraisal firms. I chose one, and began my journey in October.
Here are some tips that I can pass on to you from my search:
1. If you take Appraisal Institute courses, make sure that the coordinator for your chapter has your resume.
I had five interviews and two offers from the chapter coordinator forwarding my resume to people who were actively looking for trainees. PS: I wasn't a member of AI at the time, I would say that most will gladly accept your resume whether you are a member or not.
2. Make sure your resume is spotless.
I don't want to offend anyone by saying this, check to make sure names are correct, check for typos and mis-spellings. I reviewed resumes for years, you would be surprised at how many well educated people never proofread their resumes. If I found typos or mis-spellings, it was thrown in the trash immediately. My current employer also followed this criteria.
You must be detail oriented in this business, prove it with your resume.
3. Emphasize your pertinent skills.
Any real estate experience, research experience, writing experience etc. Do yourself a favor and visit your local courthouse (or check for court records online.) Get acquainted with the process involved in searching for deeds, mortgages, tax maps, etc. You will be surprised how much of this can be done online, and you can emphasize these skills on your resume.
4. Know if you would like to specialize.
This may come later in your career, but if you know that you want to specialize in residential appraising, multi-family housing, health care facilities, hospitality establishments, etc. reasearch companies that specialize in these types of appraisals. There are some interesting niches out there. Think outside the box!
5. Join AppraisersForum.com.
There is a lot of experience on that forum. People who have been working in this field for years. Everyone is kind and respectful and they want to be helpful to you. Not only is it a great way to meet people it is a terrific opportunity to get questions answered. They have a newbe/appraiser wannabe forum and also a jobs forum.
6. Appraisal Institute Chapter/Dinner Meetings.
Personally, I never did this, but everyone in the field recommends that if you are interested in joining the Appraisal Institute that you visit your local chapter and attend dinner meetings. It is a good way to meet many appraisers under one roof. It could be that they are not looking for a trainee, but they may know someone who is, since they are able to talk to you and see you, you have a better chance of getting your resume forwarded.
7. Find Names of Appraisers In Your Area.
This is pretty easy. You can look in the yellow pages and on the internet. I wanted to find someone with an MAI designation, so if you click on the link and go to the Appraisal Institute's website you can search for appraisers by area. Print the list and start sending out resumes or making phone calls.
8. Keep A Paper Trail.
I kept track of every company I sent resumes and cover letters to. I would suggest making a subfolder for each or naming each specifically so you know who got which letter and resume. For some firms I tailored my resume to them and wanted to know exactly what the resume looked like. Make a simple spreadsheet of who you sent resumes to and what day you mailed them.
9. Read, Read, Read.
Read your text books, read everything and anything you can get your hands on, you'll learn some valuable information and when you do get that interview you'll be able to have conversations about issues in the field.
Good luck!
Next, Preparing For Your Interview(s)
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