Refinancing out of Bridge Loan

[Muhamadou Kaba]

I have a duplex in northern Detroit, Michigan (near Wayne State) that was recently rehabbed and is fully occupied. Tenants are great and on time with rent payments. I have a bridge loan that is set to mature soon and need to refinance asap. I was able to get approved for a loan but need to bring $25K to the table which I do not have. Hoping to partner with an investor and give up a large portion of ownership or transfer title to their LLC to successfully refinance and avoid any legal consequences. What can I do or how should I go about solving my bridge loan issue? Is a land contract an option? How can I find investors that may be interested in this opportunity?

[Jay Hurst]

Quote from @Muhamadou Kaba:

I have a duplex in northern Detroit, Michigan (near Wayne State) that was recently rehabbed and is fully occupied. Tenants are great and on time with rent payments. I have a bridge loan that is set to mature soon and need to refinance asap. I was able to get approved for a loan but need to bring $25K to the table which I do not have. Hoping to partner with an investor and give up a large portion of ownership or transfer title to their LLC to successfully refinance and avoid any legal consequences. What can I do or how should I go about solving my bridge loan issue? Is a land contract an option? How can I find investors that may be interested in this opportunity?

 @Muhamadou Kaba    Why do you have to bring 25k to the table?  Did the appraisal come in lower then you had expected? 

[Muhamadou Kaba]

The amount of the refinance was enough to pay off the bridge loan. The fees were really what held up this deal. Origination fee was about 7K, about 1.5-2 points, and a transfer fee since the loan was being moved from one name to an LLC.

[Travis Biziorek]

Like Jay, I'm struggling to understand the details.

You have a bridge loan... for what amount?

And what did the property appraise for currently?

The only way I understand this is if the LTV on the appraisal is ~$25k short of what you owe on the loan. Is that right?

Giving us a full picture of what's going on here would be helpful.

For example, what did you purchase the property for? What did you spend on rehab? How much was financed with this bridge loan (and on what terms) vs how much money did you put in? What's the current appraised value of the property?

Nobody will be much help until we know the full picture.

[Craig Warner]

Need more info. What is the estimated value today, what is the current balance on the bridge, what is your current score, what is the current gross rents.

Be happy to help discuss.

Thanks

Craig

[Muhamadou Kaba]

Sorry for the vague nature of my post. Here is the full picture of my situation:

I am in PA and have a business partner in Detroit that is running the rehab and is a partner on the LLC that purchased the property.

Property was bought in June 2021 with hard money (rehab budget included) for $196,000. Refinanced in December of 2022 into a 1 year bridge loan of $222,400 (80% LTV) after failing to sell the property once interest rates changed. Moved forward and rented out both units for $1200/month in November and December 2023. Since the time of my 2022 refinance my credit has taken a significant hit and I was not able to find another loan. I extended with my lender to buy time until my credit improved but that unfortunately did not happen. Ended up finding a lender that would approve our LLC's application and only use my business partner's credit history in July 2024. We were approved for a rate & term loan of $224,000 (75% LTV) but needed to bring $25,000 to the table. This included projections for taxes, insurance, and other fees from the lender. The current payoff is at ~$231,000 but my partner and I do not have the capital to close the deal. Exploring all solutions to repay the Bridge Loan and even partner with anyone who may have a solution in exchange for ownership in a property in a good neighborhood and tenants who are on time with rent payments. This is my first investment and I have made a lot of mistakes along the way so really looking to survive this situation by any means with pressure coming in from my current lender.

[Muhamadou Kaba]

Quote from @Travis Biziorek:

Like Jay, I'm struggling to understand the details.

You have a bridge loan... for what amount?

And what did the property appraise for currently?

The only way I understand this is if the LTV on the appraisal is ~$25k short of what you owe on the loan. Is that right?

Giving us a full picture of what's going on here would be helpful.

For example, what did you purchase the property for? What did you spend on rehab? How much was financed with this bridge loan (and on what terms) vs how much money did you put in? What's the current appraised value of the property?

Nobody will be much help until we know the full picture.

Sorry for the vague nature of my post. Here is the full picture of my situation:

I am in PA and have a business partner in Detroit that is running the rehab and is a partner on the LLC that purchased the property.

Property was bought in June 2021 with hard money (rehab budget included) for $196,000. Refinanced in December of 2022 into a 1 year bridge loan of $222,400 (80% LTV) after failing to sell the property once interest rates changed. Moved forward and rented out both units for $1200/month in November and December 2023. Since the time of my 2022 refinance my credit has taken a significant hit and I was not able to find another loan. I extended with my lender to buy time until my credit improved but that unfortunately did not happen. Ended up finding a lender that would approve our LLC's application and only use my business partner's credit history in July 2024. We were approved for a rate & term loan of $224,000 (75% LTV) but needed to bring $25,000 to the table. This included projections for taxes, insurance, and other fees from the lender. The current payoff is at ~$231,000 but my partner and I do not have the capital to close the deal. Exploring all solutions to repay the Bridge Loan and even partner with anyone who may have a solution in exchange for ownership in a property in a good neighborhood and tenants who are on time with rent payments. This is my first investment and I have made a lot of mistakes along the way so really looking to survive this situation by any means with pressure coming in from my current lender.

[Muhamadou Kaba]

Quote from @Craig Warner:

Need more info. What is the estimated value today, what is the current balance on the bridge, what is your current score, what is the current gross rents.

Be happy to help discuss.

Thanks

Craig

Sorry for the vague nature of my post. Here is the full picture of my situation:

I am in PA and have a business partner in Detroit that is running the rehab and is a partner on the LLC that purchased the property.

Property was bought in June 2021 with hard money (rehab budget included) for $196,000. Refinanced in December of 2022 into a 1 year bridge loan of $222,400 (80% LTV) after failing to sell the property once interest rates changed. Moved forward and rented out both units for $1200/month in November and December 2023. Since the time of my 2022 refinance my credit has taken a significant hit and I was not able to find another loan. I extended with my lender to buy time until my credit improved but that unfortunately did not happen. Ended up finding a lender that would approve our LLC's application and only use my business partner's credit history in July 2024. We were approved for a rate & term loan of $224,000 (75% LTV) but needed to bring $25,000 to the table. This included projections for taxes, insurance, and other fees from the lender. The current payoff is at ~$231,000 but my partner and I do not have the capital to close the deal. Exploring all solutions to repay the Bridge Loan and even partner with anyone who may have a solution in exchange for ownership in a property in a good neighborhood and tenants who are on time with rent payments. This is my first investment and I have made a lot of mistakes along the way so really looking to survive this situation by any means with pressure coming in from my current lender.

[Muhamadou Kaba]

Quote from @Jay Hurst:

Quote from @Muhamadou Kaba:

I have a duplex in northern Detroit, Michigan (near Wayne State) that was recently rehabbed and is fully occupied. Tenants are great and on time with rent payments. I have a bridge loan that is set to mature soon and need to refinance asap. I was able to get approved for a loan but need to bring $25K to the table which I do not have. Hoping to partner with an investor and give up a large portion of ownership or transfer title to their LLC to successfully refinance and avoid any legal consequences. What can I do or how should I go about solving my bridge loan issue? Is a land contract an option? How can I find investors that may be interested in this opportunity?

 @Muhamadou Kaba    Why do you have to bring 25k to the table?  Did the appraisal come in lower then you had expected? 

Sorry for the vague nature of my post. Here is the full picture of my situation:

I am in PA and have a business partner in Detroit that is running the rehab and is a partner on the LLC that purchased the property.

Property was bought in June 2021 with hard money (rehab budget included) for $196,000. Refinanced in December of 2022 into a 1 year bridge loan of $222,400 (80% LTV) after failing to sell the property once interest rates changed. Moved forward and rented out both units for $1200/month in November and December 2023. Since the time of my 2022 refinance my credit has taken a significant hit and I was not able to find another loan. I extended with my lender to buy time until my credit improved but that unfortunately did not happen. Ended up finding a lender that would approve our LLC's application and only use my business partner's credit history in July 2024. We were approved for a rate & term loan of $224,000 (75% LTV) but needed to bring $25,000 to the table. This included projections for taxes, insurance, and other fees from the lender. The current payoff is at ~$231,000 but my partner and I do not have the capital to close the deal. Exploring all solutions to repay the Bridge Loan and even partner with anyone who may have a solution in exchange for ownership in a property in a good neighborhood and tenants who are on time with rent payments. This is my first investment and I have made a lot of mistakes along the way so really looking to survive this situation by any means with pressure coming in from my current lender.

[Travis Biziorek]

Quote from @Muhamadou Kaba:

Quote from @Travis Biziorek:

Like Jay, I'm struggling to understand the details.

You have a bridge loan... for what amount?

And what did the property appraise for currently?

The only way I understand this is if the LTV on the appraisal is ~$25k short of what you owe on the loan. Is that right?

Giving us a full picture of what's going on here would be helpful.

For example, what did you purchase the property for? What did you spend on rehab? How much was financed with this bridge loan (and on what terms) vs how much money did you put in? What's the current appraised value of the property?

Nobody will be much help until we know the full picture.

Sorry for the vague nature of my post. Here is the full picture of my situation:

I am in PA and have a business partner in Detroit that is running the rehab and is a partner on the LLC that purchased the property.

Property was bought in June 2021 with hard money (rehab budget included) for $196,000. Refinanced in December of 2022 into a 1 year bridge loan of $222,400 (80% LTV) after failing to sell the property once interest rates changed. Moved forward and rented out both units for $1200/month in November and December 2023. Since the time of my 2022 refinance my credit has taken a significant hit and I was not able to find another loan. I extended with my lender to buy time until my credit improved but that unfortunately did not happen. Ended up finding a lender that would approve our LLC's application and only use my business partner's credit history in July 2024. We were approved for a rate & term loan of $224,000 (75% LTV) but needed to bring $25,000 to the table. This included projections for taxes, insurance, and other fees from the lender. The current payoff is at ~$231,000 but my partner and I do not have the capital to close the deal. Exploring all solutions to repay the Bridge Loan and even partner with anyone who may have a solution in exchange for ownership in a property in a good neighborhood and tenants who are on time with rent payments. This is my first investment and I have made a lot of mistakes along the way so really looking to survive this situation by any means with pressure coming in from my current lender.

 Gotcha. That definitely helps explain things, but too messy for me to get involved personally.

[Drew Sygit]

@Muhamadou Kaba sent you a DM, please respond!

[Noah Wright]

Quote from @Muhamadou Kaba:

Quote from @Jay Hurst:

Quote from @Muhamadou Kaba:

I have a duplex in northern Detroit, Michigan (near Wayne State) that was ...

Hey man, I'm curious if we can secure you an 85% rate/term refinance. That 10% difference in LTV would cover the full $25k (and I don't charge such high origination fee either.) We will need to know more about your credit profile but I'm happy to spend some time working on this to find a solution in this direction - if any exist. Feel free to reach out.