Philadelphia - LLC refinance under $100K Help

[Michael Duggar]

We are looking to buy/rehab/rent a property in Philadelphia with the property in the name of an LLC. Based on our research it appears using a hard money lender is our best option because we want to include rehab costs. We are having an issue locating a lender to refinance with once rehab is complete to get out of hard money loan mostly because we would be borrowing less than $100K which even credit unions do not seem to want to bother with. We were also told a tenant with active lease may need to be in place before anyone would lend. We are looking to purchase properties maybe $55K-$70K that need an additional $20K in rehab.

Anyone have suggestions of specific credit unions or other local banks that may be willing to refinance once rehab is complete and ready to rent if the amount we need to borrow is under $100K? 

Thanks everyone!

[Jeff Cichocki]

@Michael Duggar,

It's getting harder and harder to find lenders that go below $75k loans. Here's a few options for you...

1. Local banks. I'm not talking about national or even the regional ones (regional can be OK sometimes). I'm talking about the super small locally owned banks. Talk to them about portfolio loan options. They are the most flexible. If you don't meet their standard requirements, ask them what you can do to qualify. Most of their requirements revolve on their profit. Maybe offer to pay a higher fee to get the loan if it makes sense.

2. Private lenders don't have the same rules as other lenders. You can find them at the local REIA's and meetups.

3. Note buyers. These folks don't normally originate their own paper, but some will. Especially if you make it easy for them.

4. Hard money lenders. Many offer programs other than just short term HML's. Some have long term financing available as well. Loan limits will vary from lender to lender. We are not all created the same.

5. Blanket loans. This one is not specific to any particular type of lender. This is more of a type of loan. Some lenders will allow you to package multiple properties together into a single loan. These work great when you have several properties. These loan work more like a line of credit.

Just a few thoughts that jumped into my head when I saw your post.

Good luck!