Need Construction Loan

[Mark Christopher Javier]

Hey Guys,

Does anyone know a private lender/hard money loan that can help finance just the construction portion of a project in Los Angeles? Not sure if anyone out there is able to help with this scenario.

Scenario: Purchased the single family home (through conventional financing), tear it down, and build a brand new triplex.

I want to see if we are able to go this route rather than get a hard money loan with both acquisition/construction.

Thank you all

[Tamara Deering]

I foresee two potential problems, 1.  The construction lender will want to be in first position and the lender you purchased the property from probably does too. 2. Tearing down the home will eliminate the majority of the security that the conventional lender has in the property so they will likely get a bit perturbed with this scenario.  I would guess your only option is going to be a refi with a construction loan, hopefully there is enough equity in the land to make this option doable, otherwise you will have to hold onto the property until it makes financial sense for a lender to take the risk.  That being said there are a lot of non-conventional loans out there so someone may have a loan product that will work for you.