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Author Topic: HML to finish Rehab Project  (Read 1916 times)

Offline gleon22

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HML to finish Rehab Project
« on: May 27, 2005, 02:42:20 pm »
I'm new to this forum and looking for some creative investing ideas to finish a rehab project I started.  

Here is my situation:
I purchased a 3-family house for $455k and am in the process of converting it into 3 seperate condos.  I put 25% down ($113k) and took out a construction loan for $500k. The $500k was based on a 70% LTV of the after rehab value of the properties. $350k of the loan was for the house including closing costs and $150k was witheld for the construction/rehab costs.  

Between monthly carrying costs, construction delays and additional work needing to be done to the property I am going to need an extra $90k to finish the project.  The original bank appraisail of after rehab value was $715k in October of 2004.  I believe the after rehab value (based on comps and realtor opinion) is closer to $760k.  

My question is what are my options for obtaining the extra $90k to finish the project?  I would like to avoid a HML because of the interest rate but I am not sure if a refinance w/cash out would be timeley and yield enough $$.

I would appreciate any input or suggestions on this matter.

thank you in advance,
Gregg




 




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