HELP! Need Creative Ideas for Funding Triplex Quickly!!!

4 Replies

I am scheduled to close on a triplex property in Charlotte, NC near uptown in an area where very few multifamily comparables exist. I was intending on executing the BRRR strategy but my financing has hit a roadblock due to the lack of comps. My funding was scheduled to be a hard money flip loan because the property needs renovation and the listing required a cash buyer. The lender has indicated that the very few comps (none that have been reno'd) that are available do not support the ARV indicated of $350k. The appraisal has not come back but we are planning for the worst with it coming in around $260-270k. The 2 options that I have currently are to below:

Purchase $250k, Repairs - $50k, Rent per month - $1100-1200 per door, NOI - $2,500-2,800

$2,500 earnest money, $500 DD

1) Continue with the fix n flip loan at 85% ARV and hope for appraisal close to ARV.

2) Proceed with Rental loan @ 70% ARV, private money for 30% downpayment, fund renovation out of pocket.

3) Please Help with additional options!

4) Please Help with additional options!

5) Please Help with additional options!

Got any prospects on a local partner, maybe from a REIA, that could finance the deal? Might be able to get OPM with the numbers you brought here.

Have you considered Hard Money Lenders in your area?

@Timothy, I am not really looking for a true partner on this one since it is a smaller buy and hold and I plan on refinancing in 3 months so there would not be much interest earned to make it worth while. 

@Marco, I am working with a hard money lender already for the deal but was hoping to use their fix n flip loan for the renovation and roll into their 30 year rental loan after renovation and renters were in.  I reached out to other HM lenders but all would require moving the closing back 10 days minimum. 

At this point so I can still close on Friday, I am going to just use my own money for the downpayment and take out the 30 year rental loan. I have a 100k business LOC that I can use for the renovation and will continue with the refinance down the road when reno is complete and I have tenants under contract. Thanks for your help!

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