Fix & Flip Loan - Church Conversion
Hello BP Fam:
In addition to my work in real estate, I am a pastor. I just started a new church in January. (see link below) I was looking for a new location for our gatherings. We currently meet in a hotel. In my search, I came across a beautiful small church in a nearby town. It was on the market for over 3 months when I first saw it and it was listed under the commercial side on the MLS. Unfortunately, it would not work for us as a church because there is absolutely no parking. I think it was originally a community church that people walked to.
In any case, I saw the potential in the property to be converted into a multi-family unit. After some negotiations, I was able to get the property under contract at a very reasonable price. I am in a due diligence period and found out that it cannot be created into a multi-family without a variance. I am not confident in the process of getting that variance based on my conversations thus far. However, it can be converted into a SFH without any variance. So I am looking to pivot and create it into a single family home and flip the property.
My experience until now has been buy and hold. I have had to do significant work on other properties, but I kept them after the work. For this one, I do not think the numbers would work to keep it as a hold, but I see great potential as a flip. The lender that I have been working with said the property is "far too modified" to take on. So, I'm in the hunt for a new fix and flip lender.
Your recommendations are greatly appreciated!
Pierre