So i've been trying to get into rehabs and flips but i am finding trouble finding a lender. The house I have found is 15k but its going to need about 30k to rehab . After repairs the value will be a around 70k however each lender I've talk to has said they will not lend anything under 75k.
This is typical. A loan of that size won't make a lender any real profit.
Here's what I suggest.
Go to seedcapital.com they specialize in helping investors get high limit credit cards and lines of credit. They take their fee out of the credit they establish for you so that you don't have to put money out to get started.
@Jean Claude No HML will do this for you - there is no money in it unless they charged you something stupid like 15 points, but even then, if they ever had to foreclose on the house the time and effort would eat away any equity they had in it in a snap.
You are best served finding a private lender or seeing if you can get a credit card for the repairs. Just make sure you are confident in your abilities.
Keep looking for local lenders. Attend REIA groups.
Look for a local area specific credit union or local bank. We have been able to do small loans of under 50 k all in with these types of institutions. Good luck
Thanks ! I am based in ATL but I am trying to buy in my hometown ROCHESTER NY where property is very cheap. Will banks have a problem with me buying in another state?
What is the average size loan for a HML?
There's no AVG size loan but anything below $50,000 is a no, and that's stretching it.
I once needed 18k to put with other money to get a 40,000 down payment on a duplex. I refinanced my car and pulled the equity out of it. Got the loan for 2.0%. Down from the 2.5% it was at to begin with. The payment actually went down. I have used private money from friends and even sold stuff to get $10 -$20k. Gotta think out of the box. Trouble is if you don't have 15k to buy the house out right how will you finance the re-Hab? Not likely you will find somebody to finance a complete project for you. You gotta have some skin in the game RR
Every lender is different. Keep searching.
@Jean Claude Is the lender you contacted based in Rochester? If not, trying contacting HMLs in the local market you are looking to invest. If they do hard money loans in the local market they will probably be more open to financing your deal.
Obviously I know every market is different, but here in CT from what I see the local HMLs are the best.
Discover and loan depot offer unsecured personal loans up to $35,000 based on credit score and self-reported information. No documents. Rates range from 7 to 24% and can be amortized for as long as seven years. And you could possibly put the remainder in a 0% credit card. All that depends on having fairly good credit, of course. And being able to make the payments. But you’re in a lot of trouble if you can’t exit.
Try CL. Watch out for the FRAUDS AND SCAMMERS wanting advance fees. You may find someone there that is relatively new and would be happy to give out that amount of money.