All Forum Posts by: Matthew Spiers

Good morning everyone, I have an ongoing dispute here in FL for the 4-unit construction project I'm finishing up. I'm coming up on refinancing the property but I'm still settling on a total amount that I would owe to one of the contractors, and I need a title company here in FL that would hold the total amount for the lien in escrow until I'm able to settle the matter with the contractors. Any recommendations?

I have a 4-unit property up in Cape Coral, FL that is currently wrapping up construction. I've been approached by a couple of sober living facilities and would perhaps prefer an independent living provider if possible (with 4 units in Cape Coral it's categorized as commercial so all ADA requirements, fire safety, etc. have been provided). Is there anyone in the area that is a provider of one of these services interested in renting a facility near the City Hall?

Yup.

Thank you everyone. Unfortunately I've injected every last dollar that I have on this project so borrowing or putting in my own money is not even close to an option.

Hi everyone,

I've been building a 4-unit property in FL and I had a specialty drywall contractor I had to hire for a fire-rated ceiling. They had to do some work outside the scope of an initial contracted amount of $19k. They were supposed to bill based on hours (different rates for framers, drywallers, supervisors, etc.), and send me invoices every week.

However, they never sent me the invoices each week, and when I asked about the overall cost of the project toward the end of may (the project started in May), they told me $35,000 so far. Well it turns out the overall price they're charging is $89,000 and it is so far outside of my budget I have no way of paying this.

Does anyone know how I should approach this? What concerns me is any lien that would prevent me from refinancing the property.

Thanks,

Matt

Hey John, thank you so much for the insight. For me the ARV versus a DSCR type of loan doesn't matter all that much. My main focus is really to reduce the number of closings (due to fees) and to pay the family member back for helping cover some previous work. After looking into it a bit more, it looks like some sort of construction bridge loan would be exactly what I'm looking for. Do you have anyone you recommend?

And in terms of the work we've had done, I've been told that once you're "dried in" it can also qualify as a fix and flip loan. So whichever works best. I just want to repay the people that helped me out and try to do one closing.

Hi everyone, I've posted on here a few times trying to find the right lending product and lender but haven't had much luck over the last few months. I'm about 6-8 weeks away from finishing up a 4-unit construction project in Cape Coral, FL. I'm looking to rent it out and rents in the area are $2,400-2,500/mo for a 3-bed/2-bath property like mine, especially on a waterway channel.

The prior valuations have been $1.25 million in total but I've found from one lender that a valuation on a 6% cap rate may be the best way to give me the money I need to finish the project. I'd ideally like something that'd be an interest-only construction-to-perm type of loan for a small multifamily like mine, with the cap-rate helping reach the proper ARV %'s that most lenders need. At a 6% cap-rate my property's worth approximately $1.9 million instead.

Does anyone know of any options like this out there?

@Erik Estrada yeah unfortunately I'm well aware of all those criteria. I have about 3 offers from lenders right now willing to do the 70% but I'm looking to see if anyone can be a bit more flexible with 75% ARV. My main issue appears to be lenders qualifying that off of as-is value and not true ARV.

@Alex Bekeza I understand. I'm willing to go either way on the condos vs 4-plex as I've got the paperwork halfway done on the condo side but I'm not against keeping it as is being a 4-plex. Just wanting to get it done. I'll go ahead and upload my info to your link. Thanks!

Good afternoon everyone,

I've posted about this in another post but didn't get a whole lot of feedback so wanted to see if there are any private lenders out there with slightly relaxed terms in this market. To give a background; I have a 4-unit in Cape Coral, Florida that I'm currently building but it's reached it's "waterproof" phase with roof/doors/windows/stucco that makes it now a fix-and-flip. The market rents are $2,300-2,700 and each unit is a 1,400sqft 3bed/2bath. It overlooks a freshwater channel. 

ARV = $1.25 million - $1.3 million (each unit previously appraised as condo units for more comp availability)

My current loan I have is for $720,000 but it appears my GC was just a shell contractor that didn't quote nearly $250,000 worth of sitework the city's making me do because of the building's footprint.

I'm basically looking for a lender that will allow me to borrow up to 75% ARV on the property to get it wrapped up quickly. It's As-Is value is about $1 million but many lenders are doing their % ARV off of the As-Is which obviously won't work.

Are there any private money lenders out there that can offer 75% ARV loan on this property based on it's true ARV?

I'm also open to just getting funds for the difference that I need to finish the project instead of refinancing altogether.

Thank you,

Matt