Seeking rehab loan in Berkshires, MA

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Seeking rehab loan in Berkshires, MA

Michael Eagle
New York City, NY · Member since 2019 · 12 posts · 4 votes

Got a killer deal on a great property and location in The Berks that we've LLC'd with a pro contractor to convert into a 2 unit place. Looking for a rehab loan of $175k, 12-18 month timeline, $3k/mo in rental income once filled, est. $400k ARV.

Would love suggestions or interest in private lending. Not interested in big down payments or +10% interest rates. 

Thanks, all! 

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
5mo
It's typically one or the other. You are not going to get a low down payment with a low interest rate. You'll either get a low down payment with a higher interest rate or a high down payment with a lower interest rate.
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    5mo
    It's typically one or the other. You are not going to get a low down payment with a low interest rate. You'll either get a low down payment with a higher interest rate or a high down payment with a lower interest rate.
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  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    4mo
    Quote from @Michael Eagle:

    Got a killer deal on a great property and location in The Berks that we've LLC'd with a pro contractor to convert into a 2 unit place. Looking for a rehab loan of $175k, 12-18 month timeline, $3k/mo in rental income once filled, est. $400k ARV.

    Would love suggestions or interest in private lending. Not interested in big down payments or +10% interest rates. 

    Thanks, all! 


     Sounds like a reasonable ask - the 12-18 month timeline is a bit lengthy for a hard money loan however, especially up north (curious do you budget slowdowns or pauses in rehab from winter weather in that market?), that might actually be the biggest hurdle to getting the best possible terms (might have to trade rate/points for that length)

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  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    4mo
    Quote from @Michael Eagle:

    Got a killer deal on a great property and location in The Berks that we've LLC'd with a pro contractor to convert into a 2 unit place. Looking for a rehab loan of $175k, 12-18 month timeline, $3k/mo in rental income once filled, est. $400k ARV.

    Would love suggestions or interest in private lending. Not interested in big down payments or +10% interest rates. 

    Thanks, all! 

    @Michael Eagle

    A $175k rehab loan on a 12–18 month timeline could be possible if the ARV around $400k is well-supported and the scope to convert it into a 2-unit is fully documented.

    The key items lenders will focus on are:

    • current purchase price / basis
    • as-is value
    • full scope of work
    • contractor bid and permits
    • ARV support
    • borrower experience
    • LTC / LTARV
    • exit strategy
    • whether the 2-unit conversion is already approved

    The “no big down payment” and “under 10% interest” part may be harder depending on leverage and experience, but the deal sounds worth reviewing if the numbers are solid. 

    786-656-0387
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  • Lynne D.
    Member since 2023 · 16 posts · 7 votes
    4mo

    Actually with the right private INVESTOR rather than lender both no down payment and low interest rate is possible. It's a matter of finding the right person that values you and the merits of the deal willing to put their capital to work so you both win in the end! If what you're offering is solid and pays better than investing in the market an investor might take you up on your deal.

    1Reply
    • Michael Eagle
      OP
      New York City, NY · Member since 2019 · 12 posts · 4 votes
      4mo

      @Lynne D. We have some prospects, and always looking for more. Are you a possible investor prospect? 

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    • Lynne D.
      Member since 2023 · 16 posts · 7 votes
      4mo
      Quote from @Michael Eagle:

      @Lynne D. We have some prospects, and always looking for more. Are you a possible investor prospect? 


      Hi Michael, to answer your question, I am an investor like you. I found all my private investors on BP. We partner where they provide the capital, I do all the work and we split the profit in the end. So no underwriting process with rules like funding up to 70% of the ARV, no down payment, no credit check, and no loan fees. The investor might charge a wire fee but that's pretty much it. They look at the merits of the deal and if they like it they fund it, simple. I have a project now where I'm looking for a private investor!

      0Reply
  • Mayo Gilfurt
    Real Estate Consultant · Connecticut Ct · Member since 2026 · 130 posts · 30 votes
    4mo

    Interesting project. The contractor already being lined up along with the projected ARV and rental numbers definitely helps the financing conversation.

    The current lending environment can make rehab terms tricky, especially when trying to keep cash-in and rates reasonable, but I’ve seen certain bridge and rehab structures work when the deal basis and exit strategy make sense.

    I work on the capital side reviewing scenarios like this fairly often. If you want, feel free to DM me or shoot me an email with the basic numbers and I’d be happy to take a look and see what direction may make the most sense for the deal.

    1Reply
  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 698 posts · 253 votes
    4mo

    Hi @Michael Eagle, welcome to BP!
    From a lender’s perspective, this is a pretty classic small-balance bridge / private money conversation—but the structure and expectations need a bit of alignment to what the capital market is actually doing right now.

    On a $175K rehab request tied to a ~$400K ARV, most private or bridge lenders are going to underwrite this primarily off ARV and exit strength, but they still won’t ignore basis and liquidity. Even in strong value-add deals, you typically see:

    • ~65–70% ARV cap → roughly $260K–$280K total exposure ceiling (purchase + rehab)
    • Rehab funded in draws, not upfront lump sums
    • Pricing tied to risk profile, not preference

    Where I would gently push back is the “no big down payment / no +10% rates” expectation. In today’s market, those two variables are directly tied to each other. If someone is offering higher leverage, lower cash-in, and a distressed/rehab timeline, the tradeoff is almost always higher pricing or stricter structure (points, reserves, or tighter draw controls).

    That said, your deal has a few positives from a lender standpoint:

    • $400K ARV on a $125K basis is strong equity cushion
    • $3K/month projected rent supports a solid stabilization narrative
    • 12–18 month timeline fits standard bridge execution windows
    • Value-add via conversion to duplex structure is a clear forced-appreciation play

    Where it gets tighter is execution risk. Conversions in smaller secondary markets like “The Berks” tend to raise lender focus on:

    • permit and zoning confirmation
    • contractor track record
    • rehab scope clarity (this is where deals often get capped)

    If this were being structured cleanly, the most realistic capital stack would be:

    • Senior bridge loan at ~65% ARV (all-in exposure)
    • Rehab funded via controlled draw schedule
    • Interest-only with origination points
    • Exit via DSCR refinance once stabilized

    Net-net: this is financeable, but not at low leverage + low rate simultaneously. You’ll need to decide whether the priority is minimizing cash in or minimizing cost of capital—because in this segment of lending, you rarely optimize both at the same time.

    If you tighten up contractor scope + exit DSCR assumptions, this is the type of deal private lenders will typically engage quickly on.

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  • Corinna Negron
    Member since 2026 · 129 posts · 21 votes
    4mo
    Quote from @Michael Eagle:

    Got a killer deal on a great property and location in The Berks that we've LLC'd with a pro contractor to convert into a 2 unit place. Looking for a rehab loan of $175k, 12-18 month timeline, $3k/mo in rental income once filled, est. $400k ARV.

    Would love suggestions or interest in private lending. Not interested in big down payments or +10% interest rates. 

    Thanks, all! 

    If the numbers are real and the contractor is experienced with conversions, the deal itself actually sounds pretty solid from a leverage standpoint — especially with a projected $400k ARV against a $175k rehab request.

    That said, the combination of:

    • low/no down payment,
    • sub-10% rate expectations,
    • and value-add construction/conversion,

    is where most traditional private lenders will tighten up.

    A lot of lenders care less about the current value and more about:

    • total project basis,
    • rehab execution risk,
    • permits/zoning,
    • borrower experience,
    • and refinance/exit feasibility.

    The strongest part of your scenario is probably the projected rental income and stabilized value if the market supports those numbers.

    You may have better luck with:

    • smaller private lenders,
    • local investor-backed capital,
    • or relationship-based lenders instead of institutional hard money groups.

    If structured correctly, a duplex conversion with solid DSCR on exit can still attract interest even in today's rate environment.




    1Reply
  • Mark Wright
    Member since 2024 · 95 posts · 13 votes
    4mo

    Michael,

    Can help you out with your project. Call me 307-228-1954.

    Mark

    0Reply
  • Sherri D.
    MI · Member since 2014 · 118 posts · 11 votes
    4mo

    Interesting deal

    0Reply
  • Frankie VozziBusiness Member
    Member since 2025 · 346 posts · 86 votes
    4mo

    Sounds like a solid value-add setup, especially if the contractor partnership is already in place. A lot of rehab lenders right now are focusing heavily on:

    • realistic rehab scope
    • clear exit strategy
    • contingency reserves
    • borrower experience

    Especially in smaller secondary markets. The projected rental income and ARV definitely help tell the story if the numbers support it. Are you planning to hold long term after stabilization or refinance out once the conversion's complete?

    [email protected]516-888-7750
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  • Camile Case
    Developer · Fort Lauderdale, FL · Member since 2026 · 24 posts · 3 votes
    4mo
    Quote from @Michael Eagle:

    Got a killer deal on a great property and location in The Berks that we've LLC'd with a pro contractor to convert into a 2 unit place. Looking for a rehab loan of $175k, 12-18 month timeline, $3k/mo in rental income once filled, est. $400k ARV.

    Would love suggestions or interest in private lending. Not interested in big down payments or +10% interest rates. 

    Thanks, all! 



    Michael, did you end up getting this closed?


    If not, I'd be curious to know where the deal stalled—down payment requirement, rate, rehab scope, appraisal, or lender execution.


    Conversions can sometimes be structured differently depending on the purchase basis, rehab budget, ARV, experience, partners involved, and exit strategy.


    If you're still working through it, feel free to share where things stand today. Happy to point you toward the financing structures that can close.


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