Hi everyone I am a first time poster long time reader. I am presently working with a HOA in getting a Hardmoney loan for renovation and rehabbing. the property has an as is value of 1.1 million but after repairs conservative estimate of 3.4 million. the problem is the property is a condo complex is great disrepair, only 25% occupancy and a negative NOI. We have a possible lender that will give 60% ltv on the arv 13% interest paid monthly 30 days after closing and 10k for appraisal. This sounds good to us because we know once the repairs are done we have people that are willing to purchase out the units. However I think the company is backing out because of the negative cash flow, is there anyway to get around this.
Ask if pre-remodel purchase contracts signed by those buyers, contingent upon the completion of the remodel would help.