Greer Advisors, LLC

 Innovators in Real Estate Analytics

Appraisal: Several aspects of appraisal are included, appraisal review, appraisal management, appraisal production, and related services.
Appraisal Review: Greer Advisors can review appraisals covering virtually all property types and most locations, including portfolio reviews. Appraisal review typically involves a desk review of a commercial appraisal report, although field reviews are available in certain locations. The review document can be on a client-provided template (with certain volume requirements) or on a Greer Advisors appraisal review template. An appraisal review completed on the Greer Advisors review template typically runs 20-plus pages long, and is one of the most-comprehensive reviews in the business. Two philosophies drive the review(s): 1) ensure the appraisal conclusions are credible and 2) provide a review document that is comprehensive enough so the client does not need to read the appraisal report. A Greer Advisors review summarizes the key physical and economic features of the property being appraised, summarizes the sales, rents, and the methodologies used to value the property. During the review process, the subject property and all comparables are geocoded (when addresses are noted in the appraisal). Data from the appraisal is databased, including the rent roll and Income/Expense forecast. The data extracted from the appraisal is also available to the client via a variety of data file types, e.g. XML, CSV, etc. The current appraisal review platform captures up to 10,000+/- fields per appraisal, with roughly 1,000 fields captured from a typical non-complex commercial appraisal. In addition to obtaining a comprehensive professional review from a third-party MAI, many clients find tremendous value in the database files, which can be incorporated into a variety of internal data systems.

Appraisal Management: For institutions that do not want to bear the fixed expense of a Chief Appraiser and related staff, Greer Advisors can provide appraisal management services, effectively acting as the appraisal department for a financial institution. Such services could include ensuring compliance with various regulations pertaining to appraisal, including selection of the appraisal panel, approval of the panel by the institutionís board (annual regulatory requirement), independence of the appraisal process, and oversight of the appraisal ordering/engagement and review process. Similarly, for institutions with pending MRAs (Material Remedial Action Letters) from regulatory bodies, Greer Advisors can help the institution work through the process of removing the MRA.

Appraisal Production: Additionally, Greer Advisors can provide appraisal services for a variety of needs, including purchase/sale, financing, litigation, and other needs. Greer Advisors may decline to appraisal certain properties due to professional conflicts, or insufficient resources pertaining to certain markets or property types. In such cases, Greer Advisors will attempt to provide referrals of appraisers capable of completing the assignment.

Advisory: Covers a multitude of possibilities, including econometric modeling, site selection (also based on hedonic regression models), risk rating models / portfolio analysis and optimization, portfolio valuation including updating/indexing technologies, data contract negotiation, web site design, data delivery systems.
Portfolio Optimization: Greer Advisors can provide solutions to maximize return and reduce risk for a portfolio, typically equity portfolios where properties may be disposed of and alternative properties may be acquired. Historic metro/property type performance measures are analyzed for an extended period of time. First, rather than using a typical CFA-style approach, where risk and returns tradeoffs are based on a theoretical market standard, surveys are taken to determine the specific risk/return preferences for the owners of the portfolio. Oddly enough, certain investors prefer a less-aggressive strategy after target yields are earned (i.e. protect the yield at all cost), while other investors prefer a more-aggressive strategy after target yields are earned (i.e. double down). In short, the risk aversion differs for each client, which is modelled in the optimization analysis. Once the risk aversion is modelled, an existing portfolio, with asset values or weightings are analyzed. Historic returns are analyzed on a quarter-by-quarter basis. Market-based overall returns and volatility measurements are determined for each property in the portfolio. Total portfolio returns and volatility are also measured. Properties in the pool with poor risk/return characteristics are identified. Additional metro/property type combinations are selected based on optimizing the entire portfolio's risk/return profile. Rather than using a benchmark and beta analysis, i.e. similar to the stock world, thousands of potential metro/property type combinations are analyzed to determine the combinations that optimize the risk/return profile for a specific portfolio of properties.

Portfolio Monitoring: Greer Advisors can provide data solutions to monitor the value of a portfolio on an ongoing basis. Metro/property type combinations are stored in a database. Users have the ability to select the property type, metro, and year/quarter the loan was booked or the asset was acquired. The system identities the most-probable change in value based on market conditions. For institutions that perform periodic inspections, the results of inspections or other data on the property can be built into the analysis via scoring and indexing systems.

Litigation Support: This covers two basic types of litigation support, valuation disputes and management disputes.
Valuation Disputes: Greer Advisors can provide expert witness services in disputes over valuation, rent, highest and best use or various other aspects of real estate.

Management Disputes typically involve claims of potential gross negligence by a board of directors within a financial institution or potential misrepresentation of expected returns for other companies. Based on regulatory expertise, Greer Advisors can provide expert witness services with regulatory issues. Regarding realized versus expected yields, Greer Advisors can assist in determining variations between actual and market yields, market yields at time of prospectus versus stated yields, and various related analysis.

All litigation services require a signed contract and retainer fee prior to discussion of assignment.Greer Advisors may decline certain litigation support assignments due to professional conflicts, or insufficient resources pertaining to certain markets or property types. In such cases, Greer Advisors will attempt to provide referrals of appraisers capable of completing the assignment.

Tax: Two separate services can be provided, property tax appeal and tax allocation. Both have limitations similar to appraisal services regarding potential conflicts and sufficient resources.
Tax Appeal: Tax assessment methodologies differ greatly across the country, with regional nuances for existing versus base-year appeals. Greer Advisors can assist with appeals across the country. Similarly, Greer Advisors can assist with allocations or delineation of short-lived versus long-lived improvements for tax depreciation benefits. Lastly, Greer Advisors is perhaps one of a handful of firms in the country that can assist with the development/refinement of tax-based valuation platforms.

Tax Allocation: Tax allocation involves analyzing building systems to determine replacement cost and depreciation schedules on a system-by-system basis, which typically generates greater depreciation benefits in the early years of ownership.

Greer Advisors may decline certain tax assignments due to professional conflicts, or insufficient resources pertaining to certain markets or property types. In such cases, Greer Advisors will attempt to provide referrals of appraisers capable of completing the assignment.

Speaking and Consulting: Mr. Greer is a noted authority on real estate valuation, appraisal regulations, and real estate data/information systems. He has spoken before the Los Angeles and San Francisco Federal Reserve Boards and across the country before numerous organizations. He has taught courses for for the Appraisal Institute coast to coast.

Greer Advisors, LLC

Tel.:   213.985.3800

New York:  646.867.1600   /   San Francisco:  415.233.6300   /   Los Angeles:  213.985.3800
Dallas:  214.347.7500   /   Miami:  786.629.9600   /   San Diego:  619.618.2500
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