Updated almost 8 years ago on . Most recent reply
Commercial Lending - 20-Unit Apartment Complex
We're under contract on a great property that our lender (who we've done many deal with) is now balking at because they don't have an "appraisal relationship" in this particular state where we're buying (even though he told us they will lend on commercial deals in all 50 states). Is this something that you've heard of or encountered before? We've shopped some other lenders, but we'd rather keep our existing relationship. That, and the rate is better than we've found elsewhere. I'm not sure if it has to do with the fact that it's a "smaller" deal at around $500k. Would love to hear your thoughts!
Most Popular Reply
Nate Shields are you working with a lender that you have a good relationship with and the lender is flexible? If so, I'd suggest you ask them what it takes to get an appraiser they are comfortable with. Maybe they could send someone they've worked with in a near by state or maybe they could interview a few appraisers to complete the job.
On a side note: I thought the point of an appraisal was to have an independent party give a fair market value estimate. It's a frustrating hoop that investors need to deal with and the appraisal industry seems like a grey area with hidden relationships.