Hi guys, so about 9 months ago, I picked up a house at auction (thats a long long time ago now that I look at it). Pretty much a nite-mare since then. Original costs to rehab were guessed around $25k. Once we got in there, it ended up being way more and the house had to be gutted. Got it up for sale. Had some bad contractor work that killed a few deals upon inspection. Decided to turn it into a rental instead and refinance the hard money since i was told that would be the best plan while we got the things fixed on the house during the summer since our cash flows were depleting quick (and basically get money back from the contractors). Got a great renter in there but the refi came back with a problem after 2 months. They said they can't refinance the hard money loan since we are under a s-corp and not an llc. Checked with 2 other banks and same story. We have to now pay a bunch of hard money penalty fees, transfer the title on the house from an s-corp to an llc and then let it season for 6-12 months. I can't sell this house to a home buyer since there is a renter in it with 10 months left. Been trying to sell it as an investment property but the return on it is only 7-8%, so no bites yet. I am losing about $300 bucks a month currently which isn't to bad (rent minus hard money loans and taxes, insurance, etc.), but still hurts.

Would love to get some ideas if there are better ones then just waiting the 6-12 months out. I would acutally like to get the hard money loan off my books since half of that is a family hard money loan and they would like there money back now.

Total hard money loan is around $100k.

Any ideas?

Thanks guys!

Joe

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Need help with creative financing!

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