Updated over 6 years ago on . Most recent reply
Financing ideas for a multi-family
I am purchasing a rehab in Stamford, CT for 450k. It's a multi-family, but needs a lot of work. It's basically a gut job and rebuild from studs and up. Prob. looking around $250k-$300k in rehab costs. Can anyone recommend a direct lender for this? The two banks I deal with do not offer construction loans for multi-family buildings. It would only be about four units, so the larger commercial lenders aren't interested. It will be worth 1.2m + after completion with an estimated 108k rent roll as per comps and average rent rates for said constructed units.
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Penn Johnson ffrom Stamford Mortgage/Danbury Bank is the best in the area on creating options for deals that have hair.
Looks like you probably need a "construction to perm" loan. The $1.2M after rehab value sounds a bit high off the cuff, not that you might not be able to find someone to pay for it but could end up being the most expensive trade of a 4-family that I know of. I know one that was +$1M but believe it was barely at $1M.