October 20, 2025 | 2 Minute Read
Through REI Brokers (www.reibrokers.com), I help investors secure bridge loans and refinance their rental properties. The biggest value I bring is that I’m an investor just like them—we speak the same language and face the same day-to-day challenges (shameless plus).
On a current refinance with my fellow investor Jake and his business partner Chris, I’m guiding them through the underwriting process for one of their rental properties. So far, we’ve submitted all the documents needed for a complete package.
As underwriting reviews the documents, the next step is the appraisal. If we hit our stated $238,000 value, Jake and Chris will get a loan of $178,500 (75% LTV). This will allow them to pay off their current loan and either pocket some cash or recapitalize back into their business.
Most investors take this process for granted and simply schedule access for the appraiser without personally getting involved. But consider:
What happens if the tenant isn’t available when the appraiser shows up? That means rescheduling possibly delaying the closing because UW is waiting on the appraisal.
What about all the supporting documents the appraiser needs to accurately assess value?
What if the appraiser uses comps that are distressed cash sales or fixer-uppers? This happens with inexperienced or new appraisers. Those should not determine the value of a fully remodeled, stabilized rental property.
I approach it differently. Meet the appraiser. This way, you get a sense of their level of professionalism and experience.
And, helping the appraiser doesn’t mean negotiating on the value. Here’s the process I follow:
Provide a CMA summary. I ran the comps for Jake and Chris (I am a broker too) and gave them a CMA for them to provide to the appraiser.
Keep your explanation simple.
“Here’s a window into how we arrived at the current value for the property.”
No need to dive into details—just let the data speak for itself.
If asked about target value, be strategic. I usually will state $10,000 to $15,000 above my projected ARV. This gives us a cushion and often the appraisal comes in higher than our stated value to UW.
Share your scope of work. Always provide all improvements and costs in a scope of work. This helps the appraiser understand value-added repairs.
Provide a lease agreement. Most lenders will require a rent schedule with the appraisal.
Remember, appraisers are busy and will appreciate your assistance:
If tenants are home, leave and let the appraiser do their work.
If the property is vacant, wait outside or in your car.
By following this process, you’re not pushing value—you’re supporting it with credible data and letting the appraiser come to their own conclusion.
And it has worked every time. Every appraisal has matched our projected value or higher.