I own a home in williamsburg NY that needs about $700K to finish a renovation. Long story short had contractors did a bad job (we're in a lawsuit) and now considering selling the home (halfway through renovations - would need to sell to investor at discount) or figure out financing to finish it. I've tried a home equity line but banks don't want to lend since it's still halfway through construction. What would be other financing options I could try?
@Leisy Bartumeut sorry to hear you had a bad contractor experience and are left in this position. Your options really depend on what debt you currently have on the property. If you don’t have a first mortgage, you’ll certainly have several ways to tap the equity, it will be more difficult if your looking for 2nd position debt or re-fi(not impossible). Please provide some more detail and I’d be happy to pass along some contacts in Bk.
Hey @Leisy Bartumeut - very sorry to hear about your situation... whenever we use a bad contractor, we end up paying more than once in one shape or form. I was going to recommend a hard money option but that might be cutting it very thin depending on what your margins are looking like for the flip - is that something you've considered? I'll shoot you a DM.
@Leisy Bartumeut Partner up with a private investor, whether that be debt or equity partner, to finish the rehab and buy them out during the refinance part of the transaction
You need capital and someone needs return on their money, combine those two parts for a win-win