Question on Exit Strategy

[Gabriel J.]

My lender needs an appraisal and by extension the appraisal company will do a thorough examination to provide an ARV for the lender to use. They are basically doing a Construction-type loan like a LOC (as was explained) but to do that and to make sure they have done their due diligence, they want to provide an appropriate ARV. However, I am unsure how the offer should be worded in case the ARV comes out lower than expected (call it lack of faith in the system, whatever). I just want to make sure I have an exit strategy in case my numbers don't fit. I do not believe it would be covered as 'unable to finance' because it may still come back at below market value. Any help would be appreciated.