Financing and Cash Offers

[Jordan Mobley]

I am a new investor. Im looking at a condo in Columbia SC. A guy there is selling 9 different units priced from $30k to $50k. After running the numbers on some of these units some I feel like are a good buy while others I do not. The issue that I am running into is that practically all lenders or banks do not fund loans under $50k. He only has one unit at this price for $51k and he only wants cash offers. It's my understanding that hard money, private lending, and cash investors are all considered cash. So the unit goes for $51k and I want to put $10 down on the property. It currently is leased throughout the end of the year at $950/month, which is slightly under current market value ($1200/month) in the area for a 4bd 2ba 1500sqft. There is a steep HOA fee of $460/month which I am not a fan of. However, the unit will produce some cashflow.

How do you fund projects under $50k? If I put down 20% that brings the loan down under $40k. And if he agrees to sell it cheaper than the asking price at market value, plus the down payment the would be significantly lower, around $30k. Which would make it eligible for a cash out refi if i'm not mistaken, that would get me the down payment back. Just looking for feedback, what's the best way to fund sub $50k deals if you don't have the entire capital on hand? Thanks. 

[Brandon W.]

@Jordan Mobley

I know a local credit union that did a loan for me for sub-$50k. Shoot me a PM and I’ll send you the details