I am hoping that someone can help me or put me on the right path to find a solution here. I am purchasing a single-family home on an owner financing contract. My original plan for the home was to by it fix it up and either lease it with an option to buy or use it as corporate housing. I has a private money lender that was a co-worker who invested the constructions funds and I supplied all of the materials.
While in the construction phase the house caught fire. There was a lot of damage that was caused by the fire department than the fire itself. The insurance did payout and we were going to start getting everything back on track. Out of nowhere, my PML tells me that he wants out of the deal due to personal reasons. So, I had to pay him back his money. Now I am out of money and I am spending money monthly on the owner finance contract about $550 per month. I am looking for some kind of funds to get this project completed. I would love to keep this house and use it as a rental or corporate housing.
All the hard money lenders that I have spoken to will not loan to anything under $100,000. I would need around $50,000 to complete everything.
Please give me any advise on how to proceed here. Thank you.
HELOC or a construction loan would be my first couple of options.
@Aaron K. Any suggestion on companies? I can’t seem to find one that has low lending guidelines.
@Annie Smith none specifically, HELOCs generally won't have very low minimums though as they are a LOC. I suggest contacting as many companies as possible, and being agnostic as to which one you choose.