Looking For 1-2 Year Bridge Loan

[Cody DeLong]

Running into my first low appraisal and need a bridge loan until I can stabilize the property, bank knows that once its stabilized we will get the high appraisal we need. The appraiser went with sales data instead of potential income when comparing the properties. This is in a town of 5,000 where not many properties change hands of this size so the comps are not accurate. Long story short it's an 8 Unit + 1 Commercial that needs to be stabilized. All the unites are subsidized housing through the Maine Housing Authority and all rent is paid at HUD FMR rates by the state. Right now there are only 3 tenants, the management company is placing 2 and the commercial unit needs a build out to split into two units. Looking for a 1-2 Year interest only or interest plus principal loan. Purchase price is $200,000, we have $40,000 to put down on it. Where would you guys go?

[Harrison Smith]

@Cody DeLong I would use hard money if I had to, calling either Milk St. or Lincoln. A private investor would be ideal but that project may be a hard sell to that type of lender. If you have any capacity with a HELOC or can collateralize a personal LOC with other assets (investment accounts, etc.) those could be options, but ultimately hard money may be the best path to fill that gap and give you some time to stabilize.

One other thought, companies like New Egg and Discover offer personal loans that they sell as "debt consolidation loans." The terms are favorable to you and the cash can be used for anything, so those might be worth exploring. Sometimes you can get $30K - $50K at rates under 6%. 

Best of luck putting the deal together!