Financing REO 10k-25k rentals

[Ritch Shepherd]

I've been very successful with purchasing REO's for 10k-25k and renting them out for $625-$700 to sec. 8 tenants. I've used credit cards with fixed rates and Bank of America to mortgage the properties, but these types of loans are no longer available. Are there any banks that will finance non owner occupied rentals for 10k to 25k? Thanks, Ritch

[Dustin Phillips]

Hi Ritch,

Sorry it took a while to get back with you... Here is a contact at US Bank. You can also contact Doug Thompson at Community Bank in Westfield. I do not have his number handy so I will get that to you at a later time. Contact Melissa at US Bank:

Here is a run down on their program...

Melissa says they’ll do at least 70% with nearly all qualified people and up to 80% LTV with the right person and the right deal. They do 20 year am’s with a five year fixed interest rate which is in the mid 6 to mid 7% range right now.

They are strictly a cash flow based lender, so assets don’t matter too much – the property needs to cash flow on it’s own and the borrower either personally or as their company needs to cash flow too. If a person/business cash flows well enough, that can offset a underperforming property.

They are fine with doing out of state borrows for assets that are local to where they have a branch presence.

If this doesn’t make sense or you have any questions, just let me know…

Melissa A. Matney
US Bank
Commercial Banking
800 E. Main Street
Richmond, IN 47374