Having a hard time with cheaper properties

[Gabe Ledo]

I'm having a hard time Finding loans for properties under $70,000. A lot of the rental properties that I would like to acquire for some turnkey rentals range from 30,000 to 75,000. I have excellent credit and 20% down but no one wants to lend at these lower amounts. Other than bundling a few properties into a commercial loan with only 25 year terms does anyone have any finance suggestions?

[Jay Hinrichs]

yup its an underserved market.... the reason is lenders simply can't charge enough.. as a lender you need to bring in 3500 to 5k per file to stay in business.  you can do that through points and junk fee's and or any other configuration but you need that amount to make it even close to profitable.

so when someone has a perception of borrowing money and see's conventional rates or govmit back rates at 1 or 2 points  they are thinking a lender should do the 30k loan for 300 to 600 dollars.. LOL  simply won't work.... if a lender had to foreclose they would lose their butt big time.

if you start thinking in the area of 10 to 20 points.. you stand a chance of getting a loan.. its still small money to you 3k or so... but is 3k worth NOT getting the property??? that's the question.