ES Appraisal Services/Evalonline.com/Evaluation Solutions AMC in bankruptcy and is out of business
Another AMC closes its doors. I have been predicting AMCs going out of business for a long time. Why? The cost of starting a national AMC is in the millions. To handle cash flow problems, such as losing a main client (ES and JVI are examples) millions more are needed in cash reserves. There are over 400 AMCs now since HVCC in 5/09. I don’t know how many have lots of cash reserves. I suspect that many don’t. It is very similar to an appraisal business being dependent on one client and then losing the client. Nothing new.
ES is in bankruptcy. Employees and back payroll taxes must paid first. Vendors/suppliers typically don’t get much.
What is surprising to me is how many appraisers keep accepting orders, even though there are many Internet postings about them, often for many months.
A few months ago, in the September 2012 issue of my paid newsletter, I wrote about how to collect from AMCs. It is not that hard. It is not that hard. I will be setting up a special AMC Watch List for my paid subscribers. To subscribe to the newsletter, click the banner below.
I have always known which AMCs were in trouble long before they went out of business. Real estate agents have been complaining for 2007 about BPO payment problems. Appraisers started speaking up in early January, 2012.
In the January, 2013 issue I have a profile of a mid-size AMC including how I evaluated their financial strength and ability to handle a downturn.
Sorry, I can’t give it all away as I spend a lot of time on the research and writing ;>