Hey guys,
Here's my situation. My business partner and I have a great deal on a 6-unit under contract. Cash purchase. Purchase price is $97,000. Expected rehab costs are approximately $130,000. Closing and carrying costs are another $8,000 or so. Total all in cost $235,000. ARV conservatively will be approximately $300,000 (but likely closer to $350,000).
We just had a private lender, with whom I worked in the past, tell us that he is unfortunately not going to be able to fund the deal. We are under contract to close by 12/31/17. So, we need to find other financing fast. The private lender terms were 10% interest, one year term, interest only payments, first position lien, insurance and title insurance, and personal guarantees from myself and my partner. The lender was going to provide 100% of the purchase price and the rehab costs.
I would like to find something comparable out there. Any suggestions? We don't want to pay hard money lender interest and we can't go to a conventional/commercial bank because the property needs too much work.
Even if we could get 70%-80% of the deal financed (i.e. 100% of purchase price and part of the rehab), we could come up with the rest of the funds (we will have access to approximately $75,000 once a commercial refinance on another building I own completes in January).
Has anyone had success with any peer-to-peer lending platforms? I have previously tried RealtyShares, but the guy who I spoke with said that my deal was too small for them (it was another $200,000+ project). Has anyone tried to get financed through PeerStreet? Anything else that's similar?
All suggestions would be appreciated. Thank you.
Vitaliy