Updated 7 months ago on . Most recent reply
Need a Bridge or Construction Loan
I am building five houses within two miles of the giant Boeing facility in Everett, WA. I've put in all the infrastructure and street, sidewalks, etc, and started units 1 and 2. But my short-term financing timed out.
I have a new appraisal for the project valuing it currently at $2.7m. Current debt is $1.1m which includes tract acquisition, all infrastructure, street, and units 1 and 2 to the point they are today. This is not considering over $1m of my own money I've put in to the project. (I got the current loan when I ran out of my own money)
Looking to refinance current debt, with cash out of $100k-600k depending on lender's preferences, so I can finish and sell unit 1. Zillow indicates that ARV will be something like $1.7m. (6 BR, 3 BA, EnergyStar NextGen Homes) I have almost 50 years in this business and credit has been flawless up to a couple of months ago. (Lots of debt) And I am low on cash.
Have tried many community banks and hard money lenders, but the issue seems to be a mid-project refinance. I didn't know this when I took out my existing short-term loan.
Open to ideas. Loan investors who want lots of collateral, or I could consider a bond issue or buying a publicly traded shell company. Anxious to get back to work.
Most Popular Reply
The biggest issue I see is mid construction on the two units. I would be more than happy to discuss with you but I believe you may need to break things up on the total project if that makes sense. Feel free to pm me and we can discuss. Appraisals will be key