for $1,500,000 - the lender apparently is nervous due to construction delays - secured
by three $650K houses under construction 85% complete. Any ideas on where to
begin looking for money/lenders. Or the current lender will continue with additional loan guarantee by substantial individual. Any advice appreciated.
Update: after speaking with client further, loan amount is approx $1.3 MM and developer is purchasing one house for his residence so apprently he needs a “bridge” loan for the remaining two properties. There are three more or less identical properties with approx. $427K borrowed against each property.
I’m not sure how the bridge loans work, but apparently the properties are close to completion. Properties are located in desirable area of Atlanta, Ga (Smyrna area).
Any advice would be appreciated.
Bridge loans allow you to leverage of one or more properties to finance another—are the other properties that are being used to securitize the bigger property owned free and clear or do they have a mortgage?
Regards,
Scott Miller
what state is the property in? I know some banks in florida that offer financing.
Property is in Georgia. In speaking with current lender LTV is approximately 75% so these properties could easily qualify for certain types of financing. One option is to have an investor guarantee the bridge loan in return for a fee - does this seem risky on the guarantor’s part? What is the potential dopwnside? Also, there are no other properties securing the loan, only the three identical SF houses, one of which is already sold. So really my client is looking for a guarantor for two of his three properties in return for a fee (he mentioned $25K), or the ability to obtain a bridge loan at reasonable rates.
Thanks in advance
Russ Worth