How to combine the loans?

3 Replies

Hey everyone! I came across a valuable deal in Miami, FL. Its is 4 unit building that is 85% vacant and need some minor renovation. 


The seller accepted our offer of 550k and willing to finance 250 for 5 years. We are looking to finance other 250k to make a purchase. The end goal is to fix up the property, increase value and refinance within 1 years and hold it.
What are the beat ways to finance remaining 300k ? Can the hard money lenders help? Thank you.

Is the seller willing to take a second? You can get a first mortgage with private money and have the seller hold a second. Most of the private loans I am able to solidify for my clients are one year terms just as you are aiming for. Feel free to PM if you'd like more assistance.

@Taras Kokhman

It’s extremely difficult, but not impossible to acquire a property without any invested capital. The difficulty doubles when the property needs rehab and you need borrowed funds for that. And triples when the buyer is inexperienced.

The seller would have to be extremely motivated to accept a second position on a large amount of financing when the buyer has no capital invested, is behind a first mortgage with a large balance, and the buyer doesn’t have the capital to pay for the rehab. However, I’ve seen situations where buyers have been able to convince sellers to do just this.

If the seller is unwilling to subordinate his lien, then the situation has gone from extremely difficult to near impossible. I say near impossible and not impossible because after 40 years in real estate I think I’ve seen just about everything.

Hello, how is the building 85% vacant as it is 4 units. if 3 out of the 4 units vacant that would be 75%. Also, I would just double check comps and maybe it would be better to find a cash flowing deal before this one.

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