Where do you find a loan for a $30-40k property?

[Account Closed]

Hello BP nation! I am entering a new stage in my investing strategy and need loans on 30-40k properties. Where to I go? Anyone know any banks locally that do 5, 10, 15 year loans for this small amount with 25% down?

thanks!

[Jeff Kehl]

@Account Closed both Citizens First/Synovus and Greater Community Bank  do loans that small for me. Both of them though I had a pre-existing relationship and had done some larger deals with too.

I suspect many local banks would be happy to work with you on smaller loans but you have to look at it from their perspective. They are looking for people they can do repeat business with over a long period of time. Put together a package describing the deal you are looking to finance along with a plan to do more and pitch it to several small banks there and you'll find a lender.

Let me say this though, those small loans are also not good for you to do. Look at all the little fees involved as a percentage of the amount financed and you'll see that small loans are not in your best interest either.

If your business plan is to buy inexpensive properties, try to figure out how to bundle several together in one loan. I often will finance 3-5 properties together under one loan just to make it easier, spread out the fees, and get it to a decent sized loan.