Hard Money Lenders under 20k

Does anyone know of any Hard money lenders that's willing to do a loan for no more than 11k, for an owner occupier willing to pay off the amount in 18months or sooner?

Edited: 06/26/2010 at 01:15PM

Ted Harris

Real Estate Investor · Portland, Oregon

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Jun 16 '10, 12:38 PM

How about a credit card?

Edited: 06/26/2010 at 01:15PM

Kendra Pearson

· Chicago, Illinois

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Jun 16 '10, 01:02 PM

I don't have any credit cards, loc's or anything like that.

Edited: 06/26/2010 at 01:15PM

Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado

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Jun 16 '10, 01:07 PM

How about getting one?

Would the lender be in first position? If not, what's the amount of the first mortgage? What's the value of the property? How much cash do you have in the deal?

Edited: 06/26/2010 at 01:15PM

Jon Holdman, Flying Phoenix LLC

Scott R.

Real Estate Investor · Amarillo, Texas

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Jun 16 '10, 03:21 PM

Jon-
hate to jack someones thread, but I'm also interested in knowing if you have some leads for similar priced property., $10k to 20k first position with 20% minimum skin in the game

Edited: 06/26/2010 at 01:16PM

Alicia Jones

Virtual Assistant · carrollton, Virginia

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Jun 16 '10, 07:28 PM

You may what to try Business Credit..

Edited: 06/26/2010 at 01:16PM

Bryan A.

Real Estate Investor · Charlotte, North Carolina

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Jun 16 '10, 09:30 PM

it doesn't sound to me like you're looking for a hard money loan..maybe you could be a little more specific so we could help you....that being said, do you realize the points and interest that are associated with a hard money loan? you sure you can pay that back? is this for your primary residence?

Edited: 06/26/2010 at 01:16PM

Vikram C.

Real Estate Investor · Phoenix, Arizona

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Jun 16 '10, 10:30 PM

Peer-to-peer lending sites such as prosper.com allow you to borrow money unsecured for short periods of time. That might be more suitable than a HM loan for small amounts of money. But, unlike an HML, I believe these sites will care about your credit.

Edited: 06/26/2010 at 01:16PM

Kendra Pearson

· Chicago, Illinois

3 posts
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Jun 16 '10, 11:31 PM

My credit is not the best right now, the property would be an investment eventually. I'm just establishing business credit. This would be my first time in real estate investing and the property needs minor work. Once everything is complete, the property could be worth 45k to 60k.

Edited: 06/26/2010 at 01:16PM

Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado

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Jun 16 '10, 11:56 PM

So, again, these questions:

Would the lender be in first position? If not, what's the amount of the first mortgage? What's the value of the property (how much are you paying)? How much cash do you have in the deal?

HMLs are going to be in the mid teens for rates with 3-6 points and $500-1000 in fees. They're going to want to see an exit plan. 18 months is a LOOONG time for a HML. They will typically want to see a way for you to pay them back in 6-9 months.

Many HMLs will want to see you with 10-20% your own cash into the deal.

Most will want first position only. I only know of one person who did a second position HML and he ended up losing the entire loan.

OO is generally not an option for hard money. Too many entanglements. If you can't make the deal work, a HML expects you to quitely walk away. With a "home" rather than a "property", you will start saying "don't take my home". No HML want's to deal with that.

Edited: 06/26/2010 at 01:16PM

Jon Holdman, Flying Phoenix LLC