Financing Advice Needed

[Michael P.]

Here is my situation:

- Started an LLC for investment purposes in October 2006.
- Became a licensed contractor in 2006 after having grown up in the business.
- Bought slightly burned and condemned 3/2 house in bad neighborhood for 10K. Put 50K cash into renovations. Total investment was 60K. Property is now worth 80K after decline in market (from approx. 120K). Owned free and clear.
- Living in the property. Renting one bedroom for $450/month.

I've since had a serious illness and I'm no longer able to do the physical part of construction. I can still be a general contractor - estimate costs, hire subs, manage the project and all of that. I can still complete the projects. Just not do the work myself.

The problem is because of the illness I have 100K in bad personal debt and 250K in medical bills. I talked to my banker and he told me that he wouldn't lend me any money and didn't know anybody who would.

I have $5K in cash.

Building homes is what I know. I feel that I could turn my situation around if I could build and sell a few houses. I just need the money to buy materials and pay labor.

Can you guys tell me how you would proceed in this situation? Where can I find the funds to do another project?