Getting construction loan on a property with a city lein..

[Nick Patterson]

Hi,

I have come across this before and curious to see what other folks here have done.

We have a 6 flat under contract that needs about $350K in rehab.  (Its a real ***hole)
But in a solid area and the numbers work after completion.

The problem is the city of Chicago has 2 liens on the property (over 20 years old) for what I can only assume is property violations.  

Our first thought was to buy for cash and then finance the construction, however, our community bank lender will not loan on properties with outstanding liens.

So other than 100% cash or hard money options, not too sure what the play would be.

Any suggestions?  

Thanks!