Is Anyone else having a lot of difficulty finding funding?

Question

I have a duplex in Lisbon, Maine under contract for 75 K. I know it's a great deal, but no one seems to be lending right now because of the Covid outbreak. I know barely any hard money lenders are lending right now, but does anyone know any other alternatives? I've been trying to find private money, but my search isn't going very well at the moment. I want to BRRR this deal and keep it as a rental. I have everything already set up, contractor, manager, lawyer, title, etc. Just need to find the money!

Carl Hebert · Answer

@Kyle Nicholas Yeitrakis Have you checked with the smaller community banks and credit unions? I have heard that they have not been as stringent as the bigger banks right now. Mechanics Savings, Dirigo Credit Union etc.

Carl Hebert · Answer

@Kyle Nicholas Yeitrakis the lenders could be gun shy due to the location also. Lisbon and Lisbon Falls have always been a little less robust when compared to other towns in regards to rent and housing appreciation. You usually have the same issues as nearby Lewiston and Auburn with aged housing with deferred maintenance leading to costly repairs and updates. Old wiring, plumbing and almost guaranteed lead paint. With the unknown of how housing markets are going to fare they are probably looking at the past and thinking no thanks. This is just an opinion of what I have seen in the area over time. Three-four years ago if you asked me if Lewiston and Auburn would see double digit increases in rent and building appreciation each year I would said doubtful. Now I’m hoping Covid doesn’t wipe out all those gains!

Kyle Nicholas Yeitrakis · Answer

I'm thinking about wholesaling it to a cash buyer at this point... I had found a PL here in VA, but since it's such a far trip to Maine he didn't feel comfortable. I am working with a lender at the moment, the only way it'll work is if i partner with my mother on the deal. Instead of doing that i believe Wholesaling it may be my best option. Let me know if any of you have had luck! thanks for all the valuable feedback

Anthony Dadlani · Answer

@Kyle Nicholas Yeitrakis

Happy to review the numbers with you. Maybe the bank you are working with sees something wrong.

Would love to have a conversation with you about your experiences and business. Please feel free to reach out to me and schedule a call. Best of luck in all your endeavors.

Carl Hebert · Answer

@Kyle Nicholas Yeitrakis let us know how it goes and who you end up with. It might be handy down the road lol.

Kyle Nicholas Yeitrakis · Answer

Yes i've tried a lot of the local banks in the area Bath Savings, Lisbon Fcu, Androscoggin, but i'm going to call the ones you listed Carl, Thank you. Crazy times! I think i may have found a Private lender, but not 100% on it yet. Thank you all feedback, good luck

Jeremy A. · Answer

Having same issue on my refi cash out. I checked 10local banks and cu and only 1 offered but no cash out only offer to pay for upgrades repairs maintenance or buy another building.

Jeremy A. · Answer

Dirigo fcu only does commercial loans up to 50k for any llc business i knew this cause i tried.

Ronald Isgate · Answer

I agree with @Carl Hebert - check around to local banks and CU's - you may have better luck.  I would also encourage you to cal around to other local investors ---- they will know who is lending, especially from a private and HML standpoint.

Is Anyone else having a lot of difficulty finding funding?

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