Lending for low purchase price

[Darnell Fenderson]

Hi Team,

I have a property I would like to purchase for a buy and hold at $42,500. However, I am having trouble securing financing for this property. Can anyone assist me?

[Andrew Freed]

@Darnell Fenderson - Too little information for anyone to pounce on this opportunity. Provide numbers for purchase, renovation, and exit. Show people what the investment looks like over the life cycle otherwise people simply don't have enough information to go off of. I would recommend creating a short business synopsis/plan of the property, the numbers, pictures, and comps and send it around to close family and friends that might be interested in lending or partnering. That is normally what I do when I have a property under contract and looking to raise capital. 

[Darnell Fenderson]

Quote from @Andrew Freed:

@Darnell Fenderson - Too little information for anyone to pounce on this opportunity. Provide numbers for purchase, renovation, and exit. Show people what the investment looks like over the life cycle otherwise people simply don't have enough information to go off of. I would recommend creating a short business synopsis/plan of the property, the numbers, pictures, and comps and send it around to close family and friends that might be interested in lending or partnering. That is normally what I do when I have a property under contract and looking to raise capital. 

 Thank you for that. Since it was a buy and hold I thought I could ask if anyone does financing around that price

[Erik Estrada]

You may want to try a local bank for this 

[Derek Brickley]

Hey Darnell, 

Depending on the details we have done this before. Conventional loans only, no DSCR. Would that help?

[Darnell Fenderson]

@Derek Brickley absolutely it would!

[Patrick Roberts]

Mortgage under about $75k-$80k are notoriously hard to get. Typically, local banks and credit unions are you're best bet. 

[Ned Carey]

One way is to get a Hard Money loan, after you get two or three properties you can then bundle them together to get blanket loan.

As already said low amount loans are hard to get and often take getting creative. 

[Jacob Sherman]

you may be able to find a bridge at 50% ltv on that . rate will be high . issue with those is not enough protective equity for the lender