hail mary - need advice
I'm not sure which forum this should go into so I just picked the lending and mortgage advice forum. Hopefully it will be the right one.
I need some ideas. I'm running out of ideas, cash and time. I'm not sure where else to turn so I'm hoping someone on here can help.
TL;DR - I need advice on securing a construction loan for about $750k to do renovation to a 9 unit residential apt building that is currently uninhabitable and therefore making no money after a casualty loss a few years ago. Banks keep telling me various things: no room in their portfolio, loan is too big for them, we need more equity, the as-complete appraised value won't be high enough, etc. even though banks are also telling us the rents are fine but those other reasons keep popping up to block the loan from even getting to the appraisal stage again.
Long version:
3 years ago I had lightning hit my, at the time, mixed-use apt building that I had only purchased 8 months prior, so I had barely touched the principal. Through some miscommunication, to say the least, with the insurance broker the building was also insufficiently insured but had enough to allow the primary lender to approve the loan. Two loans were taken out: a bank was primary lender and then a smaller loan with owner financing.
I hired a contractor to repair the roof from fire damage, encapsulate the smoke, dry out the building, and perform mold mitigation. That consumed most of the insurance money.
We waited a year for them to give us an estimate for reconstruction and they never gave it to us. Lots of money wasted waiting on them. Finally got a different contractor and had an estimate within a few months. Took it to the bank. They approved it. Got an appraisal and the appraisers screwed us to make a quick buck. Bank denied based on appraisal. We since got a third contractor involved to get the cost down even more with more work being done. But we've been dealing with banks for over a year now. I'm running out of banks in my area to talk to. I'm literally talking to the last one or two that have returned my initial call.
I'm almost to the point of needing to use personal income to pay bills for the property and not having enough in reserves to even make payments on a construction loan even if I got approved again. BB&T have told me they will loan up to $750k but they are imposing $150/unit/mo repair reserves (even for new construction) which kills my NOI and causes the DSCR and LTV to fail because I can't get rents up enough to compensate for $16k/yr being held in repair reserves.
I need someone who will either trust me enough to be an investor/partner with me who has serious cash lying around and wants to entrust it to me (it would held by the bank though) or trust me enough finance me completely. I can provide more details offline if anyone is interested. I doubt hard money would suffice at this point since interest rates are so much higher on those loans, plus they probably aren't intended to go for a full year, which is what our contractor estimates construction time will be.
thank you
Brandon