A hard-money bridge to an FHA 203(k) with ADU reclassification. Ten steps, six external counterparties, one bot running the choreography. This is what the Personal Agent actually does when you hand it a problem.
The owner inherited a $1.249M hard-money bridge loan at 12% interest-only on a Sag Harbor property held by a single-member LLC. The bridge was burning ~$12,500/month in carrying cost with a 24-month runway. The traditional refi market priced him out (high DTI, single-family classification, no recent tax filings on record). The play: convert the property to a legal 2-unit dwelling, requalify under FHA 203(k) Standard, and add the projected accessory rental income to the qualifying ratio.
Sounds simple. Ten steps, six external parties, four months of choreography.
Convert title from RBH LLC to Robert + Kate as Tenants in Common via DIY recorded deed. Bypasses the $1,500 attorney quote. Drafted, notarized, recorded. Cost: $250 in recording fees.
Pre-approve the borrower as an FHA Standard 203(k) candidate with 2-unit reclassification penciled in. The lender already understands the strategy because we lined up the architect and consultant in parallel. Outcome: pre-approval letter in hand before the appraisal.
Skip the agents. Hire the architect directly. File the accessory dwelling unit permit application with the town. Southampton allows accessory apartments on conforming lots — the existing pool house qualifies as a habitable structure with minor upgrades.
Standard 203(k) requires a HUD-approved consultant to draft the Work Write-Up and Cost Estimate for the rehabilitation. We line one up from the HUD-approved roster. They walk the property, scope the ADU conversion, and produce the document the underwriter needs.
The appraiser comps the property as a completed 2-unit with rent income for the accessory unit on Form 1007. This "as-completed" value — not the current value — is what the loan-to-value ratio is calculated against. Critical lever.
Underwriter adds 50% of the projected ADU rent to qualifying income, which fixes the DTI math. Lender credits absorb origination and points so the borrower brings minimal cash to closing. This is the moment the strategy proves out.
Closing pays off the Park Realty $1.249M bridge in full. Rehabilitation funds are escrowed under FHA 203(k) rules. Bridge interest stops the day of closing. Carrying cost cut from $12,500/month to FHA monthly P&I at ~5.5%.
Rehabilitation funds released in five stages tied to construction milestones. The HUD consultant inspects each stage before the escrow agent releases the next draw. No surprises, no delays, no contractor disputes.
Town inspector signs the final Certificate of Occupancy. The pool house is now a legal accessory dwelling unit — not a workaround, not a gray area, fully entitled, fully permitted, fully recorded.
List the ADU. Rent collected. The 50% projected income line on the underwriting file becomes 100% real income on Schedule E. Property is officially a 2-family dwelling. Permanent value lift, permanent income lift, exit from hard money.
The bot did: drafted the deed, filled the FHA forms, tracked all six counterparty deadlines, drafted every email and letter, monitored escrow disbursements, produced the legal letters, kept the audit trail, and maintained the running file.
The human did: signed when asked. Showed up to the closing. Wrote the rent listing.
That ratio is the entire pitch. The Personal Agent is for people whose time is worth more than the work the bot can do for them.
