Hard Money Woes/Financing HELP!

[Jonathan Julian]

Good Day BP!

My team and I have found a fantastic fix and flip that we have a very strict time line to acquire. I have been talking with my traditional financing team and they got me in touch with a hard money lender.  From my previous research, I was under the impression that hard money could finance the repairs on the property.  

As of right now,  I am being told they will only lend the hard money to the purchase price. This requires 30% down, all repair funds in cash, and reserves plus collateral on the money itself. 

We are located in the Sacramento area. The property in question does have to be completely closed by 10/4/21 -- otherwise we will lose the property and any capital in this deal to a tax deed sale. 

The property itself has an ARV of 540k on a low estimate (last sale of this model was 667k, but since then our market has cooled down and the 540k is taking an average of sales over the year for a margin of error).
We are looking to acquire the property at 315k, with 85k in necessary renovation. 

We currently have 140k in capital ready for the deal and access to slightly more if necessary, but we are worried about the hard money requirements for reserves.

What are our options? 


Thanks!