All Forum Posts by: Hector Lewis

Quote from @Hector Lewis:

Hello,

I found a multi family property that is under $100k. I am already approved for $130k. When I told my lender about the property, they stated they could not finance if it is under $100k.

Does anyone have any suggestions for trying to get this property financed?

Thank you.

Hello Hector, while low purchase price(resulting in low loans) may be a problem, there may be a few local/ national lenders that may be willing to help you. It'd be an issue of finding them. Keep in mind, some lenders may be willing to do this but maybe not in an LLC. Your rate may be slightly higher too because from a lender perspective low loan amounts under 100K could be a little risky especially if it happens that they have to foreclose on.

Hey @Hector Lewis,

I have a DSCR but it also starts at a $75k minimum loan amount.
typically I advise folks that are coming a little less to do a fix & flip, then DSCR cash out at $75k. That way you can acquire, renovate, and either sell off or rent. 
the fix & flip is a 90% ltv + 100% renovation. 

ex. pp: $72k 

Loan 90%ltv: $64,800 + $11k reno= $75,800- that's the minimum loan amount met and we can close. Then you can refinance at $75k in 3 months as long as the ARV is $108k+

@Hector Lewis

What kind of lender did you use and have you tried the local credit union? I was able to buy a 4 unit for 75k through my credit union in Upstate NY

Hello! Most of the lenders have a minimum of 50k per door and 100k minimum of as-is value limit for rental purchase. However, you can inquire about a non-DSCR or commercial loan with the higher rate, but 50k minimum loan amount. If property needs a light rehab, fix & flip loan will be a good way to acquire this property since the loan minimum is also 50k.

Quote from @Hector Lewis:

Hello,

I found a multi family property that is under $100k. I am already approved for $130k. When I told my lender about the property, they stated they could not finance if it is under $100k.

Does anyone have any suggestions for trying to get this property financed?

Thank you.

Hi Hector, great job finding a potential property! 

Start talking to other lenders, plain and simple... you preapproval does not hold you obligated to anything. Talk with local banks, regional banks, credit unions, mortgage brokers, etc... keep having conversations with lenders until someone is willing/able and excited to help you through this exciting journey!