Need funding to finish a rehab.

Branson, Missouri
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Need funding to finish a rehab.

Codey CollinsPro Member
Rental Property Investor · South Central Missouri · Member since 2025 · 7 posts · 3 votes

I have a bit of a unique situation. I have a single-family home that I have been renovating to use for a future rental property. This home is owned free and clear under my LLC . I have been using my own funds and labor on the project. I am at the point where I would like to use the equity from the property to hire someone to finish it for me to get my weekends back and to also buy my next property. The project is about 75% complete. This was a down to the studs (and a little beyond) renovation. new roof, new siding, new wiring, new plumbing new floor joists/subfloor, and has the ductwork for the HVAC unit completed. The problem I'm having with finding funding is I had a bankruptcy that closed in December of 2023 and most banks require a 3-5 year seasoning period after bankruptcy. I've tried several local banks that have told me basically that's the only thing that's keeping them from approving me. And the private money lenders I've reached out to who don't have a problem with the bankruptcy basically have told me I'm not asking for enough money, ($30,000 to finish the project) or I need to have the project complete to withdraw the full equity. Anyone had a similar situation? Or any ideas on lenders? I feel like I've exhausted all my options. I'm in south central Missouri. Any help is GREATLY appreciated.

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Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
7mo

@Codey Collins Since the property is owned in an LLC, have you considered admitting a second member whose role is to serve as the guarantor?

More broadly, even if you secure a lender at this stage, it’s likely to be a private or alternative lender. That comes with significantly more expensive capital than traditional bank financing. It’s very difficult to get ahead if you’re consistently relying on high-cost debt.

There is a place for these lenders, particularly during the construction or development phase where leverage, speed, and flexibility can justify the cost. But once the project is stabilized, the goal should always be to transition into more cost-effective, permanent financing.

When I see investors entering real estate with credit challenges who are reliant on expensive funding sources, I question what the long-term strategy is. It often ends up feeling like a hamster wheel—constantly juggling high-cost debt without a clear path to more efficient capital.

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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    7mo
    Quote from @Codey Collins:

    I have a bit of a unique situation. I have a single-family home that I have been renovating to use for a future rental property. This home is owned free and clear under my LLC . I have been using my own funds and labor on the project. I am at the point where I would like to use the equity from the property to hire someone to finish it for me to get my weekends back and to also buy my next property. The project is about 75% complete. This was a down to the studs (and a little beyond) renovation. new roof, new siding, new wiring, new plumbing new floor joists/subfloor, and has the ductwork for the HVAC unit completed. The problem I'm having with finding funding is I had a bankruptcy that closed in December of 2023 and most banks require a 3-5 year seasoning period after bankruptcy. I've tried several local banks that have told me basically that's the only thing that's keeping them from approving me. And the private money lenders I've reached out to who don't have a problem with the bankruptcy basically have told me I'm not asking for enough money, ($30,000 to finish the project) or I need to have the project complete to withdraw the full equity. Anyone had a similar situation? Or any ideas on lenders? I feel like I've exhausted all my options. I'm in south central Missouri. Any help is GREATLY appreciated.

    Hey @Codey Collins, welcome to the BP Forum! Sounds like you need a local, "private lender" like Shelby Reed with Minnow Loan out of Jeff City.

    [email protected]
    0Reply
    • Codey CollinsPro Member
      OP
      Rental Property Investor · South Central Missouri · Member since 2025 · 7 posts · 3 votes
      7mo

      @Jaycee Greene thank you! I will definitely check them out.

      0Reply
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    7mo

    @Codey Collins Since the property is owned in an LLC, have you considered admitting a second member whose role is to serve as the guarantor?

    More broadly, even if you secure a lender at this stage, it’s likely to be a private or alternative lender. That comes with significantly more expensive capital than traditional bank financing. It’s very difficult to get ahead if you’re consistently relying on high-cost debt.

    There is a place for these lenders, particularly during the construction or development phase where leverage, speed, and flexibility can justify the cost. But once the project is stabilized, the goal should always be to transition into more cost-effective, permanent financing.

    When I see investors entering real estate with credit challenges who are reliant on expensive funding sources, I question what the long-term strategy is. It often ends up feeling like a hamster wheel—constantly juggling high-cost debt without a clear path to more efficient capital.

    [email protected]
    2Reply
    • Codey CollinsPro Member
      OP
      Rental Property Investor · South Central Missouri · Member since 2025 · 7 posts · 3 votes
      7mo

      @Stuart Udis I had not considered a second person but that is an interesting idea. And I agree with you on the higher cost of a private lender, my goal right now is to get the project completed as quickly as possible, get a renter in the home, and then transition to a "traditional mortgage" and pull out more equity for the next project. 

      0Reply
  • Pierre Guirguis
    Lender · Marlboro, NJ · Member since 2025 · 243 posts · 150 votes
    7mo

    You’re running into a structure problem, not a deal problem. Banks are out because of the bankruptcy seasoning, that’s pretty standard. On the private side, the reason you’re getting pushback is different, it’s the combination of loan size + project stage. $30K is too small for most lenders to care about, and at ~75% completion, it’s in that awkward middle zone where it’s not clean “ground-up” funding but also not fully stabilized for a refinance.

    That’s why you’re hearing:
    “finish it first, then pull equity” or “not worth it at that size.”

    Realistically, your options are:

    - Small local/private lender or individual investor who’s okay with a smaller check and asset-based lending

    - Bring in a partner to fund the last $30K in exchange for a piece, then refi once it’s complete

    - Push through and finish, then do a DSCR/cash-out refi once it's rent-ready (this is usually where the best terms are)

      The deal itself sounds solid, it’s just not packaged in a way that fits most lenders’ boxes right now. If you want, happy to look at the numbers with you and see if there’s a clean way to structure a small bridge or line something up for the takeout once it’s done.

      0Reply
    1. Stuart UdisPro Member
      Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
      7mo

      @Codey Collins It seems your credit profile is a hindrance in trying to obtain the coveted more traditional financing unless I read your original post incorrectly. Therefore, irrespective of completing the project where does that leave you? You are still limited to expensive debt options. That's why I recommend evaluating partnership structures where you can bring on a partner banks are more comfortable with. Looking at the situation more broadly, given your financing constraints the correct partner can really open up a lot of doors.

      [email protected]
      0Reply
    2. Frankie VozziBusiness Member
      Member since 2025 · 369 posts · 90 votes
      7mo

      Codey this is a pretty common “in-between” scenario. With a recent bankruptcy, traditional banks are mostly out, but asset-based lenders focus on the property, not credit.

      Options to consider:

      1. Small rehab/bridge loan – fund $25K–$50K to finish a 75% complete property; lenders care about value + ARV,

      2. Cross-collateral – if you own other property, adding it can increase loan size.

      3. Local/private investors – smaller deals like this are perfect for them.

      Key: position it as “Finish rehab → rent → refinance”. That makes lenders comfortable, and even a small bump in loan amount or bundling another deal opens more doors.

      [email protected]516-888-7750
      1Reply
    3. Matthew Bernal
      Investor · Austin, TX · Member since 2021 · 497 posts · 127 votes
      7mo

      This is a solvable problem, just needs the right lender who focuses on asset value over credit history.

      Free and clear, LLC owned, 75% complete with major systems done is actually a strong equity story. The bankruptcy seasoning and small loan size are the two real obstacles, not the property itself.

      Asset-based lenders who work post-bankruptcy exist, the key is finding one comfortable with small balance loans in your market.

      I can take a quick look and tell you honestly if there's a fit. No runaround.

      What's the current estimated value of the property as-is right now?

      0Reply
      • Codey CollinsPro Member
        OP
        Rental Property Investor · South Central Missouri · Member since 2025 · 7 posts · 3 votes
        7mo

        @Matthew Bernal just a educated guess I would say the current value is around 65-75k, a conservative ARV should be 120k

        0Reply
    4. Tyler Thorson
      NY · Member since 2024 · 20 posts · 14 votes
      7mo

      I'm willing to take a look.  Feel free to DM me.  

      0Reply
    5. J CastroBusiness Member
      Lender · Florida · Member since 2025 · 705 posts · 253 votes
      7mo

      Hey@Codey Collins, welcome to BP! You’re actually in a much better position than it probably feels right now — this is a very common gap between traditional lending and investor-friendly lending.

      It sounds like you’ve done the hard part already — being 75% through a full gut rehab with the property owned free and clear is a solid position to be in.

      What you’re running into isn’t really about risk… it’s about lender fit.

      Most banks are going to get stuck on the post-bankruptcy seasoning (typically 3–5 years), and a lot of private lenders won’t touch smaller loan amounts or unfinished projects unless they’re structured the right way.

      Here are a few options you may not have fully explored yet:

      1. DSCR or Investor Cash-Out (Even Mid-Construction)

      Some investor-focused lenders will still lend based on as-is or as-completed value, even if the project isn’t 100% done — especially since you’re this close. The key is finding one that allows:

      • Recent bankruptcy (case-by-case)
      • Lower loan amounts (~$30K–$75K)
      • LLC ownership (which you already have)

      2. “Finish & Hold” or Light Rehab Loans

      There are lenders that specialize in exactly this situation — smaller remaining scope projects. Instead of requiring a full construction budget, they’ll fund the remaining work and then roll you into a rental loan.

      3. Local/Regional Private Lenders or Credit Unions

      Not all local lenders are created equal. Some smaller credit unions or relationship-based lenders in areas like will make exceptions if:

      • The deal is low leverage (which yours is)
      • The property is owned free and clear
      • You can clearly show ARV and remaining scope

      4. Equity Partner or Gap Funding

      If lenders are pushing back on the loan size, a short-term partner or gap lender could step in for the $30K:

      • Structured as a 2nd position or profit split
      • Paid off once you refinance or stabilize the rental

      One thing I would NOT do:

      Don’t wait to fully finish the project out of pocket if it slows you down from scaling. You’re at the point where leverage should be working for you.

      What will help you get approved faster (with the right lender):

      • Clear scope of work to finish (line item budget)
      • Before/after photos or current condition pics
      • Estimated ARV (with comps)
      • Exit strategy (rent + refi or sale)


      You’re not out of options — you just haven’t been matched with the right lending box yet. Best of Luck!

      JCREIG Capital Funding
      WebsiteView Page
      1Reply
    6. Reginald TrussPro Member
      Lender · Toledo, OH · Member since 2015 · 1k+ posts · 96 votes
      7mo

      Codey — you’re actually closer than you think.
      The issue isn’t the bankruptcy, it’s the loan size and how the deal is being positioned.

      Most lenders won’t touch $30K, but if this is structured as a small equity-based bridge ($50K–$75K range) against a free-and-clear property, that opens up options.

      I work with a few capital sources that look at situations like this — especially when the asset is strong like yours.

      If you want, shoot me a message with:

      • Estimated current value (as-is)
      • ARV once complete
      • Remaining scope of work

      I’ll tell you straight if it’s financeable and how to structure it.

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