Forum Archive: Posts by: ETBK

My husband and I want very much to buy a multifamily building in bad shape and gut it (he’s an architect). We’ve found several promising properties, but every mortgage broker I’ve spoken with has said that under no circumstances will a lender provide financing for a building that is “unhabitable.” And, if it’s livable but in terrible shape, the appraisal will likely come in way under the sale price. We’re looking in the $700K range, and are able to put down 20-25%, as well as financing the construction to the tune of $180-$200K. Our intention would then be to refinance. But it seems this makes us developers and no one’s giving money to them these days. If anyone has any advice or has dealt with lenders under similar circumstances, I would LOVE your help.