Property is mortgaged – how do I finance more construction?

[Stephanie Cabral]

Hi all, I own and live in a duplex in Connecticut and the property was just approved for a third unit. I have bids for the work that are very reasonable and after construction I’ll still have at least 20% equity in the property and better monthly cash flow so I want to build. The problem is that I already have a mortgage on the property and the lenders that I’ve talked to won’t lend when there’s a loan already in place. Has anyone encountered this before? What have you done/who have you used to finance a construction project? I’m planning on refinancing as soon as possible to consolidate the loans and use this as a buy and hold. Thanks for your help!