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Charleston Business

Thoughts on Home Appraisals, Investments in South Carolina

Aug 23, 2023 10:59AM ● By David Dykes

Monthly musings… 

Lima One Capital, the nation’s premier business purpose lender for real estate investors, announced in July that it eclipsed the $1 billion mark in originations of multifamily bridge loans.

“This milestone is exciting for our team, and even more for the investors and brokers we work with,” Lima One CEO Jeff Tennyson said in a statement. “It emphasizes how Lima One serves an important niche for multifamily investors as they improve and stabilize neighborhoods nationwide.”

Lima One’s core multifamily loan types are value-add bridge and stabilized bridge loans that help investors upgrade properties and rent rolls and prepare for agency takeout financing. Company officials say Lima One’s unique multifamily lending practice consistently demonstrates the ability to underwrite properties other lenders won’t, including properties across the top 150 MSAs and properties that are Class A, B, or C.

In addition to its core multifamily offerings, Lima One also finances student housing properties and offers financing for long-term hold properties that don’t qualify for agency loans.

Since its inception in 2010, Lima One Capital has funded over $7 billion in business-purpose real estate loans. With a reach across 46 states, Lima One operates as a capital partner for both real estate investors and brokers by financing residential investment strategies including fix and flips, rental, new construction, and multifamily.

In 2021, Lima One was acquired by real estate investment trust, MFA Financial Inc. (NYSE: MFA), ensuring what company officials say is a consistent source of capital and further cements Lima One as one of the most dependable private lenders in the United States.

Lima One has strengthened its reach by expanding to the West Coast with a new operations center in Irvine, California, as well as the addition of business-to-business partnership platforms for Wholesale and Lender Finance table funding.

In June, Gov. Henry McMaster announced Lima One would expand its U.S. headquarters in Greenville County. The company’s $51.4 million investment is expected to create approximately 300 new jobs, according to McMaster’s office.

The company’s core products include bridge loans, rental property and portfolio loans, new construction loans and multifamily bridge lending. Using industry-leading technology, Lima One Capital says it relies on in-house underwriting, construction management and servicing teams to deliver unparalleled customer service.

The company’s current operations are located at 201 East McBee Ave., Suite 300, in Greenville. As part of the expansion, Lima One Capital will lease approximately 65,000 square feet in a newly constructed building in the County Square development in Greenville.

The new facility will more than double Lima One Capital’s office space, which company officials say will allow for continued rapid growth, attracting talent to Greenville and delivering its industry-leading customer experience.

The expansion is expected to be complete by 2025.

Colliers on Columbia

Positive absorption returned to Columbia, Colliers said in its 2023 Q2 office report.

Key Takeaways:

•  Vacancy dropped significantly this quarter.

•  Absorption was positive for the first time since 2019.

•  Tenants seek quality space in the market.

•  Rental rates increasing.

Vacancy dropped to 15.3 percent this quarter due to tenant demand for better quality spaces, Colliers said. It said better quality typically means a building with modern design and finishes, a full package of amenities, and an appealing, walkable area with restaurants and retail nearby.

In Columbia, buildings along Main Street, the Vista, and the BullStreet District have largely met those criteria. Conversely, buildings that lack these qualities will languish, unlocking opportunities for redevelopment and reduce the overall amount of office space.

Since 2017, 16 office properties were removed from the office inventory. Depending on the location, condition, and design of building, the new or planned use of the building has varied. Some buildings were converted to a public use like 1401 Main St. Others were repurposed into hotels or apartments like 1233 Washington St., 1200 Main St., or 1310 Lady St.

Some were purchased with the intent to demolish the building and reuse the land like the Richland Office Center, DXC Campus, and The State Media Company building. Going forward, other properties may be considered for alternative uses other than traditional office space, Colliers said.

Understanding home appraisals

Some good advice from the Federal Deposit Insurance Corporation (FDIC), an independent agency created by Congress to maintain stability and public confidence in the nation’s financial system:

Whether you are buying a new home, refinancing your existing home loan, or selling your home, it is important to understand how an appraisal is used to assess the value for the property. A lender uses an appraisal not only to assess the value of the property, but also to determine such things as your interest rate, required down payment, and whether you will be approved for the loan. This article provides important information you should know about the home loan process, the role of an appraisal in determining the value of your property, and what you can do if you believe an appraisal is not accurate.

For a lender to fund your new purchase, refinance, or home equity loan, it will require an appraisal to assist in determining the value of your property as collateral against the loan. Your lender will typically order the appraisal, and you will pay the cost of the appraisal as part of the financing process. Because the lender uses an appraisal to determine the relationship between the property’s fair market value and amount of the loan that you might be approved for, an appraisal that is inaccurate can affect the amount of equity available to you or how much you might pay for a property.

Once the appraisal has been completed, a lender is required to provide you with a copy of the appraisal as soon as reasonably possible, but no later than three days prior to closing. Therefore, if you receive an appraisal that you suspect has inaccuracies that impact the resulting value, some initial work on your part may help to expedite a secondary review of the valuation and assist in closing on time.

One thing you can do to prepare is to ask your lender early in the loan process whether they have a process for re-analyzing an appraisal, particularly if a consumer provides information that may affect the valuation. This process of re-analyzing an appraisal is also known as a reconsideration of value.

If your lender has such a process, ask what information they will need and what their procedures are to request a reconsideration of value. Also, to set expectations, find out how the lender will keep you informed about the status of the review of the information you provide and of any action the lender may take to address your concerns.

Once you receive a copy of the appraisal, you should review it carefully, especially if the value determined in the appraisal does not match what you believe the property is worth. In some instances, the appraisal may contain an error(s), exclude significant information, or contain potentially biased information that impacts the final valuation.

To prompt a lender to reassess a valuation due to potential inaccuracies, you should collect and provide any information that addresses your specific concerns in order to expedite this process.

This information may include such items as: a plat map to correct lot size; measurements of your home to correct total square footage of livable space; pictures of your home’s interior/exterior showing updates or improvements and receipts for materials and labor to correct property condition; and/or a list of similar homes near your property that sold within the past 12 months, including the corresponding sales price, that could be more reasonable comparable property sales than those used in the valuation.

If you believe your property appraisal was not accurate, suspect any possible discrimination in the lending process, or have an appraisal-specific complaint, you should contact your lender to request reconsideration of value, if they have a process to do so, or to file a complaint regarding the appraisal with the lender if they do not.

If you believe that the lender has not addressed your concerns, you can contact the lender’s primary federal regulator. Most mortgage loans today are made by non-bank lenders supervised at the federal level by the Consumer Financial Protection Bureau (CFPB). The CFPB also supervises many large banks that make mortgage loans. Complaints against those lenders can be filed online at

You can also contact the FDIC for assistance. The FDIC’ BankFind is a tool for consumers to locate information on current and former FDIC-insured banking institutions, including their primary federal regulator. Complaints against FDIC-supervised institutions can be filed online at the FDIC Information and Support Center (, or you can mail a complaint to the Consumer Response Unit, National Center for Consumer and Depositor Assistance (NCDA), 1100 Walnut Street, Box #11, Kansas City, MO 64106. You can also contact the FDIC at 1-877-ASK-FDIC (877-275-3342).