Investor · Los Angeles, CA · Member since 2019 · 26 posts · 10 votes
Hello BP!
My husband and I have a property under our LLC in Indiana that we bought cash for $47.5k, put $13k into it, and it's currently renting for $875/mo. We're not completely sure how much it's worth now, but we think it'd be in the mid 70s. We're looking to put a loan on it, but running into trouble with loan minimums.
Is there anyone that could with this OR have any advice?
Specialist · Member since 2021 · 322 posts · 273 votes
4y
Wish I could give advice, but wanted to say you picked a great state to get into. We think the growth thats been had will continue into the near, and distant future and our analytics show that too.
Lender · PA · Member since 2019 · 533 posts · 461 votes
4y
The mid west is still substantially undervalued and it would not surprise me if it begins to rise and stabilize at a substantially greater median value. But that hardly addresses the central subject of your inquiry. All of the national dscr lenders have minimum loan sizes and in many cases the deflated markets in certain cities or areas will not support their minimum loan. That is one of the factors keeping the real estate values in those areas lower. Brokers are paid to produce results in these types of scenarios. After all if it was easy you could do it yourself?
We find that local banks, credit unions and regional lenders will often be willing to lend on your smaller properties. We encounter this situation in our home state in North, and north Western Pennsylvania. We are closing two Pennsylvania rentals with a total loan size around 75,000.00 this month. The secret to success in the low value areas is to build a good team of real estate professional who can guide you through the woods. Good luck.
Thank you for the tips! My husband and I are planning to go to Indiana in May. We are going to meet our team and hopefully meet with some banks to see if they can help us. We're finding it challenging that the local banks we've called so far only work with investors that are instate...
Realtor · Indianapolis IN · Member since 2018 · 464 posts · 339 votes
4y
I did 2 refinances last month and am working on another one currently. Cross Country Mortgage and Finance of America who are national companies but have a good local presence have been best for me. I can get the small credit unions to loan to me because I am local, but many of them don't work as well with out of state investors even though the properties are local. Finding a good local loan officer is key though.