BobS
This is a tough dilemna, and fairly common. You need a temporary or hard money loan for a while so you can do the fixup nec. for a decent loan. Trouble is, any lender has to do the usual expensive due diligence & cover his fixed costs for a short term loan–whether on the new purchase or the commercial property–and must charge you accordingly.
Some possibilities:
1. Seller financing with a short fuse during rehab. Beg or borrow from others or your credit cards to give him a reassuring down payment and he’ll feel safe. Since your competition also has to scurry for financing, he may cooperate.
2. Look for comm’l short term financing in the Wall S.J. Wednesday real estate classifieds.
3. Likewise for the classifieds in Sunday U-T under investments.
4. The Bruce Norris organization in LA area offers such quick and short term financing…again it is expensive, but a one-year loan for, say, 15% or 16% may be available.
I understand your situation since I once bought a screaming bargain house (built in 1922) in Normal Heights with a bad foundation for $46,500 cash in 1996; sold it 5 years later for $254k with same foundation & full disclosure. Interestingly, the buyer got full financing since lenders started shoveling money out the door about then.
