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?