Need help to figure options on this deal…
Have a complete rehab on 1 acre parcel 2900+/- sf house with lake view from 3rd story if we chose to add it. We paid $165K for the property. Lenders appraisal came in at $325K. We included $70K worth of estimated repairs to Rehab that brought the loan to $227,500. 70k to be drawn as work is completed. We have done 80 percent of the demo. After getting into the project we realized that we need to change the scope of the Rehab to Maximize profits. We need to Demo part of the structure add an additional 750 sf. We figure this change in scope will cost us $43k to complete that is not in our original list of repairs with the hard money lender and we don’t have the extra $43K.The total sf will be approx 3650 sf now which will increase the value of the house around $83K. So now we have a Value of $408K. I have a private investor that is willing to loan us $60K to cover the additional work. The hard money loan is done as a contract for deed and is in the lenders name so we have equitable title but not legal title.
Now that I have given the details… Here is my help question…
How can can I secure the investor with this property other than a promissory note.
I can’t give a second lein on property not in my name can I???
Looking for all viable ideas…that are legal… Thanks!!!