How to find funding for unconventional renovation to add units to my mixed use home

[Alex Padilla]

I have a mixed use property with 2 units (main home and ADU) where the town has approved an additional 3 units because it's mixed use zoning. I'm estimating the cost will be about 350k since it will be a conversion and there won't be a need to construct anything from the ground up. Here's my dilemma.

I have the cash to make the conversion, but ideally I'd like to finance ~80% of the cost. The problem is I got the property at 3.5% @ 800k & any kind of financing will require me to refinance so the home can go as collateral if anything goes sideways. Makes sense, no problem, but I'm not doing that given interest is at 7% now. So my question is, does anyone know of any hard money lender or other unconventional way to get this money for the units based on purely on future cash flow? 

[Chris Davidson]

@Alex Padilla you say you have the cash to float it. I would reach out to where ever the cash is deposited and see if you can get a secured loan against it. Once you are finished get a second to pay off the secured line or just start paying it down depending on terms.

If you funds are in a brokerage account you can get loans against them just know you can have margin calls so be smart. You could go hard money, but you likely will get better terms with using your own funds as collateral. Just shop it around.

Best of luck!