We have an apt building in Chicago that is older and that has one apartment gutted but we found out there is a water issue and foundation. We only have a Equity amount of 48500, Is there a mortgage company that can roll our existing equity loan into a construction loan to tear down this building and rebuild. There are 12 brand new town homes across the alley going up. Can anyone refer me to someone and/or give advice?
It can be difficult getting a construction loan with an existing building in place if any part of it will be reused. They will typically make you get a rehab loan even if you are saving the foundation only. It sounds like you are removing everything so you should be ok.
I would start with local banks that should be more motivated to loan on revitalization projects in your area. Start with the closest ones in proximity and work your way out.
Also make sure to check with your local zoning and building departments and make sure that once you remove a building that you can put what you want in its place. If they are building new townhomes across the street you are probably ok, but better to be safe and do all your due diligence.
Good Luck! Aaron
@Dawn Gawron I would certainly ask this question in the commercial forum or maybe the multi-family forum. You will get more responses to this post in those forums than in this one. Feel free to leave this one here just in case but I think you will have better results there. Thanks!
Andrew thank your for the reply.