One of the things you have to do to get a bank loan on a house you plan to renovate is to get an inspection, so that the house can be appraised and the loan amount determined. That’s a big reason why many rehabbers rely on other types of funding: we often work on houses that have so many defects it’s hard to list them all. Also, you don’t get to pick the inspector; the bank does. That means you can come up with some unhelpful appraisals, like we did with the big house in Lago Vista.
We have a good relationship with our small-town banker near Cameron, though, so we decided to go ahead with a bank loan for the Parkwood property in Round Rock, since the interest is way better than with a “hard money” loan. So, last week we had an appraisal scheduled.
Carol went over there, arriving a little before the scheduled time, only to find the appraiser had already left. The wholesaler we are getting the house from and the heir to the house were standing around looking shocked. Apparently, the appraiser had hoarder family members and the look of this house was too much for him, perhaps too close for comfort. He was inclined to suggest the house be torn down, and made that decision as soon as he took a look at it. Hmm. That was not our plan. Now what?
Luckily, after Lee had a talk with the banker, things apparently settled down with the inspector. To our surprise and joy, we got an appraisal in on the house yesterday, and it was higher than we’d anticipated. We will get the size of loan we want to get that sad house happy again soon! The closing is scheduled for October 19, which is as soon as the waiting period after the original owner’s death has passed.
The young heir that is staying at the house is still making progress cleaning it out. She’s doing it just to be nice. When you are good to people, they are good to you back.
We sure are happy to get moving on this one soon, since the fellow who was supposed to bid on the Mattress 8 House says he needs a couple of more days. Argh.Hermann says please like and share!