Posted by NCPaul on October 24, 2003 at 07:37:42:
You found a JUICER! (At least that’s what we call them in my office.) As for “leaning” on him to do it again, the good news is that if he’s truely a juicer, and from what you said it sounds like he may well be, then you won’t need to do much leaning to get the value. Typically if an appraiser is a juicer they usually look to the client for direction when “looking for” a value. Their mindset is completely backward from what an appraiser should be doing. (Appraisers are bound by USPAP to be unbiased and “not to favor the cause of the client”.) The bad news is that this doesn’t necessarily help you the investor in the long term. You have already seen the down side of a juiced appraisal, you borrow more than the property is worth and are now stuck with it. This limits your options with that property even though you are able to benefit from an increased cash out in the loan for the short term. It’s really up to you but I’d be careful using this strategy in the long term.
Regarding my last post, I re-read it and it came off a bit rude. That’s not how I intended it, sorry about that.