How do I acquire a loan for 25k to 35k

Creative Real Estate Financing
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How do I acquire a loan for 25k to 35k

Deodat Ramdat
Rental Property Investor · South Ozone park, NY · Member since 2014 · 47 posts · 10 votes

Hello all

I saw a few properties in Detroit Michigan for 25k to 35k. How can I acquire creative finances for those properties. Please advise

Thanks

Deo

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Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
3y
Quote from @Deodat Ramdat:

Hello all

I saw a few properties in Detroit Michigan for 25k to 35k. How can I acquire creative finances for those properties. Please advise

Thanks

Deo


 Deo, PLEASE do not buy these properties.

I am the BP resident expert on Detroit. I own 12-doors there and live in California now. I'll be in Detroit from April 26-29th if anyone wants to hang out.

These properties have a high probability of ruining you. Also, nobody is financing them. Nobody. You need to have a house value of at least $67k to get conventional loans right now.

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  • Chris Davidson
    Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
    3y

    @Deodat Ramdat 1k on the right number at the roulette table.

    Private money, 401k loan, HELOC, title loan, and ETC...

    Many places to find money some of them aren't the best or smart ideas, but figure out your plan before you buy it. Looks like you are in NY, a property for 25k is probably going to need some work.

    Best of luck!

    0Reply
  • Kai Kopsch
    Real Estate Broker · Charlotte, NC · Member since 2016 · 569 posts · 351 votes
    3y

    Establish a relationship with local credit unions and some big players like AMEX. First, Savings accounts let them season 6 months on open business checking/credit cards and afterward get a business line of credit. I know people have a 150K Small Business Line Of Credit with Kabbage Payments, LLC (AMEX), with no documentation.

    1Reply
  • Frank Patalano
    Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
    3y

    I would look into a personal loan from Discover or a local bank/credit union. 
    Usually they will lend $25k.

    0Reply
  • Deodat Ramdat
    OP
    Rental Property Investor · South Ozone park, NY · Member since 2014 · 47 posts · 10 votes
    3y

    @Chris Davidson

    0Reply
  • Deodat Ramdat
    OP
    Rental Property Investor · South Ozone park, NY · Member since 2014 · 47 posts · 10 votes
    3y

    @Chris Davidson

    Thank you Chris

    1Reply
  • Deodat Ramdat
    OP
    Rental Property Investor · South Ozone park, NY · Member since 2014 · 47 posts · 10 votes
    3y

    @Frank Patalano

    Thank you Frank will look into it

    0Reply
  • Deodat Ramdat
    OP
    Rental Property Investor · South Ozone park, NY · Member since 2014 · 47 posts · 10 votes
    3y

    @Kai Kopsch

    Thanks Kai

    0Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Deodat Ramdat:

    Hello all

    I saw a few properties in Detroit Michigan for 25k to 35k. How can I acquire creative finances for those properties. Please advise

    Thanks

    Deo


     There's nationwide lender could lend as long as value loan is above 40k

    0Reply
  • Deodat Ramdat
    OP
    Rental Property Investor · South Ozone park, NY · Member since 2014 · 47 posts · 10 votes
    3y

    @Carlos Ptriawan

    Hi Carlos thank you. How do I go about acquiring that info.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    3y
    Quote from @Kai Kopsch:

    Establish a relationship with local credit unions and some big players like AMEX. First, Savings accounts let them season 6 months on open business checking/credit cards and afterward get a business line of credit. I know people have a 150K Small Business Line Of Credit with Kabbage Payments, LLC (AMEX), with no documentation.


    are those are CC rates ? 
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    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y

    DM me

    0Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    3y

    @Deodat Ramdat private financing is the way to go. Someone could loan you the money as a promissory note and put as a lien on the property. You would pay it like a mortgage to the investor.

    [email protected]512-674-5478
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  • Jon Robinson
    Contractor · Abington, PA · Member since 2010 · 29 posts · 7 votes
    3y

    Most private lenders have a lending minimum of $75k, so find a lender that will lend on a portfolio of properties.  Then go out and find 3 or 4 properties that fit your investment strategy and work the deal.  I have had lenders agree to a deal like that with seller financing as well.  

    0Reply
  • James Hamling
    Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    3y

    @Deodat Ramdat A specialty finance company. It's asset based, and must be securitized, and no not the property, it's not a mortgage. So if you have assets to appropriately securitize, an action plan that makes sense for the venture, done. 

    0Reply
  • Kai Kopsch
    Real Estate Broker · Charlotte, NC · Member since 2016 · 569 posts · 351 votes
    3y
    Quote from @Jay Hinrichs:
    Quote from @Kai Kopsch:

    Establish a relationship with local credit unions and some big players like AMEX. First, Savings accounts let them season 6 months on open business checking/credit cards and afterward get a business line of credit. I know people have a 150K Small Business Line Of Credit with Kabbage Payments, LLC (AMEX), with no documentation.


    are those are CC rates ? 

    Amex has regular bank accounts and business lines of credit. This lending over Kabbage Amex small business has nothing to do with their CC department. But sometimes, it makes sense to use a CC for smaller projects. I finished my last project with a CC from Amex Blue Business plus 30K 0 APR the first year and 2 x bonus points plus a signup bonus.

    0Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    Don't get a loan. Save up the money and just buy cash.

    Get a second stream of income if you aren't saving enough. 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y
    Quote from @Deodat Ramdat:

    Hello all

    I saw a few properties in Detroit Michigan for 25k to 35k. How can I acquire creative finances for those properties. Please advise

    Thanks

    Deo


     Seller financing or bring in a partner. 

    As a sidenote, many of those properties are not in good areas and if you use them as rentals what it looks like on paper vs. reality are two very different things. 

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    1Reply
  • Eric Gerakos
    Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
    3y
    Quote from @Chris Seveney:
    Quote from @Deodat Ramdat:

    Hello all

    I saw a few properties in Detroit Michigan for 25k to 35k. How can I acquire creative finances for those properties. Please advise

    Thanks

    Deo


     Seller financing or bring in a partner. 

    As a sidenote, many of those properties are not in good areas and if you use them as rentals what it looks like on paper vs. reality are two very different things. 


     This. A $25,000 property looks good on paper but will be a nightmare of high maintenance and evictions……

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    3y
    Quote from @Kai Kopsch:
    Quote from @Jay Hinrichs:
    Quote from @Kai Kopsch:

    Establish a relationship with local credit unions and some big players like AMEX. First, Savings accounts let them season 6 months on open business checking/credit cards and afterward get a business line of credit. I know people have a 150K Small Business Line Of Credit with Kabbage Payments, LLC (AMEX), with no documentation.


    are those are CC rates ? 

    Amex has regular bank accounts and business lines of credit. This lending over Kabbage Amex small business has nothing to do with their CC department. But sometimes, it makes sense to use a CC for smaller projects. I finished my last project with a CC from Amex Blue Business plus 30K 0 APR the first year and 2 x bonus points plus a signup bonus.


     I will have to check that out although 30k is not much to play with but I can see for small projects that would be quite helpful.. does this credit report to FICO and if you utilize it all it drops your score a lot ?? I know I have seen that happen to folks when they do this and try to refi and their lower scores mean higher refi interest.  But for flipping it would have no impact if your not needing your fico at the time.

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    1Reply
  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    3y

    Securing a loan for your business is an important step for the growth of any company, especially if you're looking to invest in real estate. Establishing relationships with local credit unions and big players like AMEX can give you access to saving accounts that let you season six months on open business checking/credit cards, allowing you to obtain a line of credit afterwards. Amazingly, some people do manage to acquire a $150K Small Business Line Of Credit with Kabbage Payments, LLC (AMEX), without needing any documentation. This kind of financial support can make a huge difference in helping your business reach its goals!

    [email protected]832-889-5607
    0Reply
  • Deodat Ramdat
    OP
    Rental Property Investor · South Ozone park, NY · Member since 2014 · 47 posts · 10 votes
    3y

    @Jay Thomas

    Thank you all for your input. Much appreciated

    0Reply
  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    Like others said, Credit unions and Amex. 

    0Reply
  • James Free
    Rental Property Investor · Fort Collins, CO · Member since 2015 · 128 posts · 327 votes
    3y

    These are extremely high-risk properties, all the more so to somebody new, which I presume you are since you're asking the question.

    Moreover, asking about financing for such small amounts implies that you have little in terms of cash reserves, which is a bad, bad place to be in when buying high-risk properties.

    I strongly discourage you from proceeding with your plan. Real Estate makes a lot of people rich, but not like this.

    2Reply
  • Kai Kopsch
    Real Estate Broker · Charlotte, NC · Member since 2016 · 569 posts · 351 votes
    3y
    Quote from @Jay Hinrichs:
    Quote from @Kai Kopsch:
    Quote from @Jay Hinrichs:
    Quote from @Kai Kopsch:

    Establish a relationship with local credit unions and some big players like AMEX. First, Savings accounts let them season 6 months on open business checking/credit cards and afterward get a business line of credit. I know people have a 150K Small Business Line Of Credit with Kabbage Payments, LLC (AMEX), with no documentation.


    are those are CC rates ? 

    Amex has regular bank accounts and business lines of credit. This lending over Kabbage Amex small business has nothing to do with their CC department. But sometimes, it makes sense to use a CC for smaller projects. I finished my last project with a CC from Amex Blue Business plus 30K 0 APR the first year and 2 x bonus points plus a signup bonus.


     I will have to check that out although 30k is not much to play with but I can see for small projects that would be quite helpful.. does this credit report to FICO and if you utilize it all it drops your score a lot ?? I know I have seen that happen to folks when they do this and try to refi and their lower scores mean higher refi interest.  But for flipping it would have no impact if your not needing your fico at the time.


    Amex business CC does not report to your utilization. The 30K was just an example of what limit I have on my Blue Bussiness Plus. They start mostly with 10K; after 3 months, you can ask for an increase they go max 3X. For some CC, you can get up to 1K bonus I always get a new one for a flip. They are a relationship Bank I only got one inquiry for now 7 Cards. Important is to start slowly and call them to let them know what you do; they love to work with RE Investors and Realtors you can get easily $200K over time with multiple CC.

    0Reply
  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    3y
    Quote from @Deodat Ramdat:

    Hello all

    I saw a few properties in Detroit Michigan for 25k to 35k. How can I acquire creative finances for those properties. Please advise

    Thanks

    Deo


     Deo, PLEASE do not buy these properties.

    I am the BP resident expert on Detroit. I own 12-doors there and live in California now. I'll be in Detroit from April 26-29th if anyone wants to hang out.

    These properties have a high probability of ruining you. Also, nobody is financing them. Nobody. You need to have a house value of at least $67k to get conventional loans right now.

    2Reply
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