New York City, NY · Member since 2017 · 6 posts · 0 votes
Hi we bought a 8 fam property 8-9 month ago in florida and because of time constraints we closed with a regular mortgage not supplemented by any renovation loan. The property is fully occupied but we intend to renovate and refinance. Our current mortgage is 25% down. Was wondering if anybody can recommend any options to take a renovation loan. We tried HELOC but it doesn't seem to work for a commercial property. Our current lender doesn't offer any type of product and it's been tough to find someone come in 2nd position. Any ideas/ recos would be greatly appreciated.
Hi Alexandru, I am afraid you are in a tough spot. In order to get renovation money you may have to refinance the whole debt with a local bank or hard money lender. Your problem requires creative thinking and financing. If you have other collateral that you could pledge,(Such as your home, or other investment properties) you might be able to find a lender who would lend you money for the rehab. Good luck!
Thanks for the feedback Steven - Yes we could use other collateral if need be from other investment properties. Also we are flexible with a hard money loan. Let me know if you have any leads. Cheers!
Hey Alexandru, I have a couple things that come to mind based off your scenario. The best option is likely to do a Conventional Renovation refinance. My company has an internal program with experts dedicated to these, and I would be happy to advise. If for some reason conventional isn't an option, I've got other renovation products that may work as well, all far better than a HELOC. The best part is, we can lend on the future value after the home is renovated, giving you a lot more room in the loan-to-value department to do the work you want to.