Financing deals in the 70-80k, range.

New to Real Estate · Santa Cruz CA, United States · Member since 2020 · 21 posts · 22 votes

Hello, I am an out of state investor from California looking at the Ohio Market, I was wondering what would be best practices to get financing for deals less than 70k, banks and lenders I have contacted have mentioned they dont finance deals that low. Also, if the ARV is near 100 would using hard/private money work and then refinancing? I am assuming it would be smart to have that discussion with a bank/lender if they were going to be able to refinance before doing so.

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Brittany MinocchiBusiness Member

Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes

Traditional financing or nonQM? NonQM usually has a minimum loan amount of $100k (although I do broker to one lender that will go down to $75k) but $70-$80k with traditional financing wouldn’t be an issue at all. Happy to connect if you’d like to discuss further.

[email protected]330-354-6590

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Jacob Hornberger
Real Estate Agent · Tipp City, OH · Member since 2018 · 65 posts · 35 votes
3y
Hello, hard money could be an option for a small loan amount. Small local banks/credit unions would also be something to check out. They normally will have more flexible terms. When refinancing, are you trying to pull all of your cash back out?
1 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
3y
Quote from @Oscar Padilla:

Hello, I am an out of state investor from California looking at the Ohio Market, I was wondering what would be best practices to get financing for deals less than 70k, banks and lenders I have contacted have mentioned they dont finance deals that low. Also, if the ARV is near 100 would using hard/private money work and then refinancing? I am assuming it would be smart to have that discussion with a bank/lender if they were going to be able to refinance before doing so.

I know some banks that will finance deals that low. Would be happy to refer them to you
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Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
3y
Quote from @Oscar Padilla:

Hello, I am an out of state investor from California looking at the Ohio Market, I was wondering what would be best practices to get financing for deals less than 70k, banks and lenders I have contacted have mentioned they dont finance deals that low. Also, if the ARV is near 100 would using hard/private money work and then refinancing? I am assuming it would be smart to have that discussion with a bank/lender if they were going to be able to refinance before doing so.

My go to lender will be able to do this. Would love to send an introduction for you.
3 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
I have yet to find a lender who will lend under 100K. Utilize owner finance for these deals.
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Vannel Dzigba
Investor · Member since 2023 · 26 posts · 9 votes
3y
Quote from @Steven Foster Wilson:

Quote from @Oscar Padilla:

Hello, I am an out of state investor from California looking at the Ohio Market, I was wondering what would be best practices to get financing for deals less than 70k, banks and lenders I have contacted have mentioned they dont finance deals that low. Also, if the ARV is near 100 would using hard/private money work and then refinancing? I am assuming it would be smart to have that discussion with a bank/lender if they were going to be able to refinance before doing so.

My go to lender will be able to do this. Would love to send an introduction for you.

I find myself in the same boat. I'll reach out to you.
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Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
3y
@Oscar Padilla LIGHTSTREAM
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Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
3y
Quote from @Oscar Padilla:

Hello, I am an out of state investor from California looking at the Ohio Market, I was wondering what would be best practices to get financing for deals less than 70k, banks and lenders I have contacted have mentioned they dont finance deals that low. Also, if the ARV is near 100 would using hard/private money work and then refinancing? I am assuming it would be smart to have that discussion with a bank/lender if they were going to be able to refinance before doing so.

Hey Oscar, I'm a local investor and agent here in Columbus Ohio and have used all types of loan (hard money, private money, conventional, etc.). I've cold called over 25+ lenders here in Ohio to find the best lenders with the best rates and lowest seasoning and fees and I'm pretty sure I found them - they're absolute rockstars. I'd love to introduce you - and they can help with financing under 100k as well. Let me know if you want an introduce, would be more than happy to help!
[email protected]614-300-7535
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Brittany MinocchiBusiness Member
Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
3y
Traditional financing or nonQM? NonQM usually has a minimum loan amount of $100k (although I do broker to one lender that will go down to $75k) but $70-$80k with traditional financing wouldn’t be an issue at all. Happy to connect if you’d like to discuss further.
[email protected]330-354-6590
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Dave PoeppelmeierBusiness Member
Realtor · Maumee, OH · Member since 2015 · 491 posts · 722 votes
3y
Quote from @Oscar Padilla:

Hello, I am an out of state investor from California looking at the Ohio Market, I was wondering what would be best practices to get financing for deals less than 70k, banks and lenders I have contacted have mentioned they dont finance deals that low. Also, if the ARV is near 100 would using hard/private money work and then refinancing? I am assuming it would be smart to have that discussion with a bank/lender if they were going to be able to refinance before doing so.

You need to get local financing. I'm sure $60k is a parking spot in Santa Cruz, but it's Tuesday here in Toledo. Regardless of where you invest in Ohio or any other market, the local lenders will be accustomed to these lower purchase prices because, well, that's just the way it is here. Local financing also lessens the "California Buyer" effect, where listing agent for owner occupied homes will tell their client to not trust your offer, because it comes with an unknown bank in CA. Unfortunately, stereotypes exist for a reason, and too many times big money from CA/NY/etc comes into our market, makes a big offer, and then tries to get the price down with the inspection. Or, if they're using an unknown Private Equity firm, the financing changes and they pull the plug on the entire deal.

If you are working with a Realtor/PM, they will have lenders they recommend and have worked with before to help you out. Regarding cash/hard money, yes that's doable, but then you're paying closing costs twice, so make sure the numbers work of course. But, cash is always king. Don't expect a perfect BRRRR in this lending market, but if you can likely get some money back out, especially if you're buying the $60k house, putting $15k into it, and the ARV is now $75-80k. Best of luck to you!
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Oscar Padilla
OP
New to Real Estate · Santa Cruz CA, United States · Member since 2020 · 21 posts · 22 votes
3y
Quote from @Bud Gaffney:

@Oscar Padilla LIGHTSTREAM

I was thinking about that, would this be considered "Home improvement" lol
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Bonnie LowPro Member
Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
3y
Keep trying small local banks and credit unions. Although we're not looking at Toledo right now, I found 2 local banks that would finance deals upwards of $50k. Also try Huntington Bank. They're all over Ohio and the midwest. They're not a small bank and I don't know if they go that low, but they're really good to work with.
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Account Closed
Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
3y
Quote from @Oscar Padilla:

Quote from @Bud Gaffney:

@Oscar Padilla LIGHTSTREAM

I was thinking about that, would this be considered "Home improvement" lol

I've done lightstream before, under home improvement, bought a house in Ohio in 2019 for 63k, cash cow for 4 years, just listed for sale today actually for 95k to cash in on the price growth.
That aside, using a small local bank its easy to get under 100k.
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Oscar Padilla
OP
New to Real Estate · Santa Cruz CA, United States · Member since 2020 · 21 posts · 22 votes
3y
Quote from @Bonnie Low:

Keep trying small local banks and credit unions. Although we're not looking at Toledo right now, I found 2 local banks that would finance deals upwards of $50k. Also try Huntington Bank. They're all over Ohio and the midwest. They're not a small bank and I don't know if they go that low, but they're really good to work with.

Thank you!!
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Oscar Padilla
OP
New to Real Estate · Santa Cruz CA, United States · Member since 2020 · 21 posts · 22 votes
3y
Quote from @Account Closed:

Quote from @Oscar Padilla:

Quote from @Bud Gaffney:

@Oscar Padilla LIGHTSTREAM

I was thinking about that, would this be considered "Home improvement" lol

I've done lightstream before, under home improvement, bought a house in Ohio in 2019 for 63k, cash cow for 4 years, just listed for sale today actually for 95k to cash in on the price growth.
That aside, using a small local bank its easy to get under 100k.

Nicely done!!
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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@Oscar Padilla
I have a private lender who will lend on investment properties
2-4 points and 12-15% interest
It’s expensive but it’s available.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Chris Seveney:

@Oscar Padilla
I have a private lender who will lend on investment properties
2-4 points and 12-15% interest
It’s expensive but it’s available.

for small balance loans thats really cheap I mean who is going to make a loan on a 60k prop for 2 points and make a whopping 1,200.00 at least on the up front fee interest rate is about right for todays market 12to 15 is whats out there.
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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@Jay Hinrichs
Yeah that size loan is probably more like 5/15 - I thought misread the original amount.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Chris Seveney:

@Jay Hinrichs
Yeah that size loan is probably more like 5/15 - I thought misread the original amount.

Lenders many times advertise 2 points but most people get a little shock when they get the actual settlement statement and there is another 2k to 3k in junk fee's lenders cannot stay in bizz doing loans at 100k and under if they cant bring in at least 4 to 5k a file be it points or junk fee's or both..
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Aravind Varma
Member since 2023 · 2 posts · 1 vote
3y
I am purchasing properties in ohio under $100K and my agent referred a lender who is able to finance under 100K investments properties

l can share referrals if you are interested
1 Reply
Linda LabbePro Member
Investor · North Bay, Ontario · Member since 2015 · 709 posts · 263 votes
3y
MY go to lender can do this in ohio message me if you are still looking
0 Reply
Bonnie LowPro Member
Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
3y
@Oscar Padilla if you are looking in Toledo, I have a bank contact I can refer you to. I'd be happy to do that. Generally speaking, you want to talk to someone in the bank who handles portfolio loans - those that stay on their books. This is where the small loans are usually held. Not all loan officers will be familiar with that product, even within the same bank!
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Anthony L Amos Jr
Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes
3y
Quote from @Oscar Padilla:

Hello, I am an out of state investor from California looking at the Ohio Market, I was wondering what would be best practices to get financing for deals less than 70k, banks and lenders I have contacted have mentioned they dont finance deals that low. Also, if the ARV is near 100 would using hard/private money work and then refinancing? I am assuming it would be smart to have that discussion with a bank/lender if they were going to be able to refinance before doing so.

I'd be happy to refer you to a few lenders who will carry loans in the 70-80k range. I can also introduce you to a group of private investors who will listen to your plan for any deals you come across.
0 Reply
Ryan Stuckey
Lender · Member since 2022 · 217 posts · 149 votes
3y
There are a few non-bank options out there for loans at least $65k and a couple below that...feel free to connect
0 Reply
Jackelyn Lee
Property Manager · Toledo, OH · Member since 2021 · 58 posts · 92 votes
3y
Quote from @Anthony L Amos Jr:

Quote from @Oscar Padilla:

Hello, I am an out of state investor from California looking at the Ohio Market, I was wondering what would be best practices to get financing for deals less than 70k, banks and lenders I have contacted have mentioned they dont finance deals that low. Also, if the ARV is near 100 would using hard/private money work and then refinancing? I am assuming it would be smart to have that discussion with a bank/lender if they were going to be able to refinance before doing so.

I'd be happy to refer you to a few lenders who will carry loans in the 70-80k range. I can also introduce you to a group of private investors who will listen to your plan for any deals you come across.

I’d be interested in this list too! Thank you
1 Reply
Tahsin Ishtiaque
Member since 2023 · 2 posts · 0 votes
3y
Quote from @Remington Lyman:

Quote from @Oscar Padilla:

Hello, I am an out of state investor from California looking at the Ohio Market, I was wondering what would be best practices to get financing for deals less than 70k, banks and lenders I have contacted have mentioned they dont finance deals that low. Also, if the ARV is near 100 would using hard/private money work and then refinancing? I am assuming it would be smart to have that discussion with a bank/lender if they were going to be able to refinance before doing so.

I know some banks that will finance deals that low. Would be happy to refer them to you
I am looking to purchase similar price range properties. I would appreciate an introduction to your lenders if possible.
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