Delayed Financing Hard Money Loans

[Camden Lowrance]

I bought a 4-unit property in cash at an auction for 130k that I believe is at as-is value of 175k on the open market.  I own it free and clear and it is vacant.  I am looking for a lender who will do essentially a delayed financing based on my purchase price.  I am willing to pay for an appraisal and up to two points.  I am looking to stay below 11% interest with no prepayment penalties.  I do not want to finance rehab but am willing to provide a ballpark scope of work.

[Mohammed Rahman]

You’re essentially looking for a cash-out refi structured like delayed financing, but without the seasoning requirements most conventional lenders stick to. 

Since it's a 4-unit, vacant, and bought at auction, traditional banks will likely want it rented first before touching it. Your best shot is with DSCR lenders that can base the loan on market rents even if it's vacant, or small local banks and private lenders willing to work off your as-is appraised value instead of your purchase price.

Asset-based lenders could also work since you’ve got a lot of equity, but you’ll have to shop carefully to keep the rate under 11% and avoid prepayment penalties. Given you own it outright and there’s solid equity, you’ve got leverage—you just need to show them your scope of work and your plan to get tenants in quickly so they see a clean exit.