Looking for some Options

[Gary Hardwick]

I'm in a bit of a conundrum. My wife and I purchased 10 acres in Rockford, MI back in January of 2021. We closed on a construction loan to build a 5000+ square foot barndominium. However, we picked the wrong contractor and the wrong bank for this project. The bank over advanced the contractor, he tried to walk away with our funds, we got him to come back, yet he wasn't able to satisfy the bank's stipulations and now the bank has pulled funding. There is more to the story, and I can tell it if an investor wants to hear it, but in the meantime I'm looking leads on who to talk to that might have the stomach to help me out, or give me some solid advice on my next move. 

I have a list of all the work completed, the amount we have into the project, plans, renderings, and a presentation of where we are. I have a company working on a solid cost to complete. I'm hoping to get hard money to complete the build and do a cash-out refi. Another option is to complete the build and sell it. The last option is to dump it. If there are any other options that I'm missing I'm open to hearing about them. 

Thanks in advance,

Gary 

[Michael Kinsella]

Hi Gary,

It sounds like you are well organized, which is very helpful when it comes to the document production portion of the lending process.

You're likely to face two primary hurdles, even when speaking to HMLs, who are categorically more lenient than banks, or traditional lenders (although seemingly becoming more stringent over time).

Hurdle 1: Property type (barndominium)

Hurdle 2: I just googled the population of Rockford, MI and I got 6,175. The relatively low population is going to put this property in the rural bucket, which will be objectionable for some lenders.

Given the above two points, you'll likely need to speak with a larger number of lenders than a real estate investor who is looking at a straightforward SFR in a well-populated area.

Nonetheless, please see below for a few ways to curate a list of HMLs.

1) BiggerPockets --> Network --> Hard Money Lenders --> Filter by state (Michigan)

2) Local REIA/meetup events, where you can get referrals from local investors and network with HML reps.

3) Google "Hard money lenders Rockford, Michigan" and explore the results.

Best,

Michael