Line of Credit -- Lender would need to be comfortable taking 2nd lien

[Benjamin Larabee]

Hi all,

Not a frequent poster so not sure if this is appropriate; however, I am in need of some help. I have a portfolio in North Eastern, NC that I purchased in Nov 2024 for 8.5mm. I put down 2mm and the seller is carrying the rest of the paper at 5% for 30years. This is my dilemma. I currently owe 6.3mm with monthly fixed costs of 34.8k debt service, 5.2k/mo in insurance and 5k/mo in taxes. We executed an aggressive rehab program that resulted, which almost completed. The portfolio is 3 homes away from being fully stabilized and currently pulling in 95k/mo. Conservatively, the value of the portfolio is sitting at $13mm. I would like to tap into some of this equity but don't want to take out the existing debt I have as it is better than terms I could get elsewhere. While I have strong relationships with 3 local community banks, they have a hard stop on being in a 2nd lien position. My question to the community is do you know of any lenders that would do this? I am looking for access to $1.5mm, which would put the LTV at 60%.

If the next question is why do we need the money? We are consistently having off market deals brought to us, which could be acquired at 60c on the dollar. The aim would be to take down another large value add portfolio and do the same process again.

Any thoughts or suggestions would be immensely appreciated!
Cade