Question/Details for Experienced Multi-Unit Lenders. Thank you in advance.
Details:
6 Unit New Construction Condo Building.
Lender: baited and switched with the loan…had us on for 8 months then changed terms about 2 weeks before closing.
Got us in by having only $300K into a $1.8M project…we had 180K into the development before closing on the construction loan and they said we would get that 180K back on the first draw. Not only did we not get the 180K on the draw, but we have put in another 160K into the project.
Current Situation:
We owe bank about $1.3M
We have $650K into project. We only have about $65K left in draws and need about $100K in work.
Sell out value is $2.3M
Is it likely that we could convince our bank to allow a 2nd…via an equity line of credit based on what we have in the project?
I would like to get about $150K fast and close the project out correctly.
The original construction loan does not allow 2nds, and to me the bank seems sleezy as can be.
They will not even have the conversation, and they have pulled the plug on all of their construction lending.
My ideas are:
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Equity Line in 2nd position, and convince the 1st position bank to allow it in order to finish the project.
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Bridge Financing.
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What I would love to do is get our invest and me back about $400K, then keep the multi-unit or refi the units individually and rent them out until the market recovers. That would put us at about a 75% LTV.
I think that this would require some kind of note based on the 10 year treasury, and being a loan of about 6% interest only in order for the debt coverage to work.
Thanks for any ideas.
Chip