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Updated about 1 month ago on . Most recent reply

User Stats

30
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5
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Faun K.
  • Investor
  • Santa Monica, CA
5
Votes |
30
Posts

2nd Lien construction or rehab loan

Faun K.
  • Investor
  • Santa Monica, CA
Posted

Any advice, referrals, experience on where to look for this particular type of loan?

I'm seeking a 2nd position loan for a gut renovation on a rental property that I have owned for 4 years and will hold.   While I know 2nd positions aren't a go-to for lenders, especially on a renovation, this could be a safe and attractive bet for the appropriate lender, or private equity.  Any ideas / experience / recommendations would be greatly appreciated.

PROPERTY: SFR, 2bd, 2ba, 858 SF. Also includes a 250SF ADU. 8250 SF usable and with huge oak trees a desirable, touristy community and very low inventory

SEEKING 2ND LIEN LOAN: $200,000 (LTV ~60%)

ARV: 1,200,000 +

CURRENT MTG: 3% i, 498,000

STABILIZED RENT BEFORE DEMO: $4,800

ESTIMATED RENT AFTER RENO:  $7,000 +

MY FICO: 800+

MY EXPERIENCE:  2 FIX & FLIPS, 2 BRRRs

ADD'L NOTES:   The main house sustained fire damage that will require a gut renovation incl a new roof.  We've gone through the process with the insurance company and have apx ~$250k toward the rebuild/renovations ($200k is currently with the mortgage company in escrow and another $50k earmarked for code upgrades, depreciation, etc).  We plan to add 50 SF to current footprint for a total of 858 SF 2bd, 2ba.   It's California... 

I've filled out the lender form here and got flooded with inappropriate responses.  Hoping for some guidance!  Thanks in advance.

  • Faun K.
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