Commercial lending for acquisition, but not the renovations

[Nicholas D.]

Hey guys,

So I am attempting to help my father get into a SFH that has some renovations needed, mostly interior. He has a lot of his funds tied up in the market and wishes to keep them that way. He is looking in the CT area as that is where he is from, I am located in Southeast Ma and that's where I invest, so my lenders aren't really in the CT market. He is looking to use bank funding for acquisition, but didn't want to deal with construction draws etc so was looking to fund the renovations on his own. It seems that he is having trouble with a lot of banks and this concept. They are concerned regarding the appraisal of it at it's current stance and will only lend if they can lend on the construction aspect as well. This is all coming from without really viewing the optics of the deal I must say, this resistance seems to come from the initial contact.

The deal is a SFH listed at 135k

Target acquisition is at 110-120k

Renovation: 40-45k

ARV 235-250k

Has anyone located in the CT area had luck regarding finding a lender for this. I understand the concern with the assets appraising as is needing the renovations, but with the numbers my lenders have stated they wouldn't care if he funds the project himself regarding the renovations. I just am looking to try to connect him with someone in that market that can lend some help etc.

Thanks