Under Contract, Need Construction Loan
I've entered in a contract for an unoccupied 12 unit building that needs quite a bit of renovation. I've got the money to put down for the agreed priced of 255K, but I need another 200K for renovations. The rents average $950 per unit and there is a high demand for housing in the town. The building is owner financed at 5% interest only for two years, with a plan to refinance under a more traditional loan once the building has been renovated. The problem is, it is a relatively rural town with very few commercial lenders. Is it likely to find national lenders who would consider commercial loans/construction loans in a small town? Would a seller ever make his loan the second lien? Any ideas on convincing local banks to finance the last 200K for construction costs?