Looking for the best financing option...

[Mike Lawrence]

I'm looking for some advice and/or better financing options for a deal that I'm working through. I have secured a contract on a prime waterfront lot on Lake Travis in Austin TX well below market value at 400K. Given the current local market conditions, the lot could sell for 600K or more. I have reached out to several local hard money lenders that are offering rates between 10-13% with 2-4 points for 6-12 months, with 10-25% down. My best option currently is a 6-month bridge loan @40K down, 2pts, @13% interest. I like everything about this offer except the 13% rate. The other consideration is that I have investment property that is worth about 500K and carries a 75K mortgage at 4.75%. So I'm considering a cash-out refi on this property to help fund the lot purchase. The challenge is my tenant is a friend who's been renting the place for 10 years, so I'm only charging him $1200 per month, which covers my mortgage, taxes, insurance at about a break-even. But if I refi @350K-375K (70-75%), the $1200/mo would only cover about 50%, which I know lenders aren't too thrilled about. My credit is excellent (800+) and the reason I'm considering hard money is because our business took a loss in 2020 due to challenges caused by Covid-19, so our DTI would not qualify for conventional lending. I've recently come across "Funding Pilot" www.fundingpilot.com and was considering reaching out to them but I couldn't find any reviews about them. Does anyone know anything about Funding Pilot or have experience working with them? Any advice or resources that could be provided to help me work through this deal is greatly appreciated!