Crazy Lender Requirements for my buyers on my Flip

[Scott L.]

This is my first time posting on here, but I wanted to see if anyone has run into a situation like this before. I recently flipped a house and it is currently under contract. We've gotten through inspections and the appraisal came back 6k above sales price. Great right, well the bank just called me and said that since this is a flip they are going to require ME to pay for a 2nd appraisal even though the 1st came back just fine. They said they would not allow the buyers to pay for the appraisal, lol. Not only that, they are requesting a full detailed write up of all my expenses on the house so they know exactly how much I am in the house for. This is absolutely absurd to me, I believe they have no right to know what I will profit on the house. I worry that if I send them my total expenses they will negate the appraisal and say they think they house is not worth much over what I am into the house for. Any thoughts would be appreciated. Thanks.

[J Scott]

The lender doesn't care as much about your profit as they do about ensuring that you've added enough value to the property to substantiate the increased price (this is why they get two appraisals and ask for documentation).