Client has a mixed use building, is looking to convert the top floor into , 2 residential apts. Client had credit challenges ( no fico) and were in arrears with current lender. But they needed to get this done, they had filed plans with Architect and needed to have certain milestones in construction completed in order to comply with city inspections. They were put in contact with me, I figured out the best form of loan they could qualify for, and we executed the plan.
1 year Private ( hard ) money loan 500k cash out- Money in hand, nothing held back by us ( no inspections or draws)
We closed in the name of a corp.12 months interest paid up front ( So they don’t have to worry about making payments during construction) That was Part A
Once we closed we immediately started working on getting client prepared for the exit loan.
Enrolling in credit restoration, we analyzed his tax returns and use of funds and gave him the directions to get himself ready for the exit loan. ( bank Loan)
The goal is to close in 15 days from appraisal coming back. Private money is best when you have to move fast, but you must be able to execute on your plans. This is a time sensitive solution. Having a professional that can direct you thru this transaction and the next is an absolute necessity.