Getting financing during a rehab

[Robert Myjak]

I seem to be in an unusual spot perhaps. I bought my investment property 3 months ago using a conventional mortgage with 15% down. I've made two payments so far, so not much equity there. I was using all personal finances to rehab the property, but my big source of funding is taking a lot longer than expected, and the project is moving faster than expected. I basically have a duplex; both units are getting renovated, and the detached garage is getting converted into an ADU.

My problem is that I need cash to finish the project without accessing the big source of funds (because I don’t know how long it’s going to be before that’s available).

So far I’ve learned that I need a second lien lender, but I can’t get any appraisals done on the property because they are both under construction. Looking for any suggestions or lenders who can specialize in this kind of loan. My property is located in San Diego, Ca. Thanks!