Renovation/Construction loan on a 4 Fl Brownstone in Fort Greene.

Hello – We are looking for guidance on construction/renovation loans in the Brooklyn area.  Giving that the place pretty much needs everything (roof, electrical, plumbing, etc) we have no doubts that it will cost in the range of $750-1million.  It was a former 8 family SRO that was in the middle of being converted to a 3 family when the former owner halted the project (we have the certificate of no harrasment).  We’re converting it to a two family and we are looking for resources/banks/lenders that specialize in this area.  Wells Fargo will only finance up to $625k. Thanks for any information on how people usually tackle this. Gracias!

cynthiamedina

in Financial Services 13 years and 4 months ago

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xparkslopian | 13 years and 4 months ago

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Cantact me at caps4lock@optimum.net. I can show you a few contactors that are doing work in Clinton Hill, You will be quite pleased!!!

no-permits | 13 years and 4 months ago

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i wouldn’t listen to half of these people. you have an architect, contractor and mortgage broker all of this thread trying to get your money. look for a new contractor.

esther | 13 years and 4 months ago

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Yes Barry Koven at Wells Fargo is most certainly the person you need to speak with. He can really be of service to you and your project.

architect66 | 13 years and 4 months ago

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Sorry to say, your 750k estimate is probably not so far off the mark.  While construction costs might come in a little lower, by the time you factor in all of your soft costs for the project (architect, engineer, expeditor, permitting, fees, etc.) You will probably be north of 750k, and could easily get to a million if you plan on lots of built-ins, custom millwork, and expensive finishes.  On the other hand: “build for quality” and don’t cut corners.  This is one of the few opportunities for improving the value of the house.

slopefarm | 13 years and 4 months ago

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This was so much easier in the boom days given the assumptions of how much value will be added. We did it, though we financed a lot less construction cost than you are looking for. I suspect the ceiling on construction financing will be driven by expected appraisal value of the completed house, with that estimate being far more conservative than it used to be and banks mopre squeamish about this. I wouldn’t put a lot of weight in resolving this through a cheaper contractor, but get several estimates; if they are all in a lower ballpark then you may be ok, but you still need a way to pay for reno if costs turn out to be higher. You don’t want to work right at your edge with no flexibility. My first step here would be to call a good mortgage broker — plenty of recs on this site for Adam Dahill and with good reason, though Al Trachtman is also good. Find out what’s possible in the way of other banks that might be more flexible than WF, as well as what hoops you need to jump through, 203, etc. GO from there.

bullfrog | 13 years and 4 months ago

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Call Barry Koven at Wells Fargo 718-780-9103 to get more info about the 203k and see what you would qualify for. Then call us and we’ll walk you through the 203k process.

jockdeboeraia | 13 years and 4 months ago

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Have you looked into a 203k loan?

cynthiamedina | 13 years and 4 months ago

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I’m glad you said that.  We were hoping it was more in the 500k-650k. Definitely will be bidding out.

no-permits | 13 years and 4 months ago

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I’d look for a new contractor, before looking for a different bank to finance this project. $750-$1MM sounds ridiculous for a gut renovation, even with high end finishes.