4-Unit Fix-and-Flip/Bridge Loan Help

[Matthew Spiers]

Good afternoon everyone,

I've posted about this in another post but didn't get a whole lot of feedback so wanted to see if there are any private lenders out there with slightly relaxed terms in this market. To give a background; I have a 4-unit in Cape Coral, Florida that I'm currently building but it's reached it's "waterproof" phase with roof/doors/windows/stucco that makes it now a fix-and-flip. The market rents are $2,300-2,700 and each unit is a 1,400sqft 3bed/2bath. It overlooks a freshwater channel. 

ARV = $1.25 million - $1.3 million (each unit previously appraised as condo units for more comp availability)

My current loan I have is for $720,000 but it appears my GC was just a shell contractor that didn't quote nearly $250,000 worth of sitework the city's making me do because of the building's footprint.

I'm basically looking for a lender that will allow me to borrow up to 75% ARV on the property to get it wrapped up quickly. It's As-Is value is about $1 million but many lenders are doing their % ARV off of the As-Is which obviously won't work.

Are there any private money lenders out there that can offer 75% ARV loan on this property based on it's true ARV?

I'm also open to just getting funds for the difference that I need to finish the project instead of refinancing altogether.

Thank you,

Matt

[Alex Bekeza]

@Matthew Spiers I actually funded a 4 unit in Cape Coral a few months ago. I do recall it being difficult to comp based on the lack of similar 4 unit properties (there were a handful of 4plexes but all pretty notably different in style/size/location so it was tricky).

Is your plan to actually convert these to individual condos or keep the property as a legal 4plex?

In general, lenders are very cautious about lending on "mid construction" for fear they are picking up another lender's problem. You'll have a much easier time getting acceptance on this if you're not doing any property type conversion.   

When it comes to lending off of the ARV it's certainly possible but no institutional lender is likely to base their initial disbursement on anything higher than a certain % of the as is value (or your original purchase cost if less than 6 months ago). 100% of the rehab would be placed in an escrow draw account but the combination of those two things could certainly get up to 75% of ARV.

I'd be happy to take a look if you could complete the link at fixandflipquote.com