Financing deals in the 70-80k, range.

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Financing deals in the 70-80k, range.

Oscar Padilla
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
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. 

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  • Tahsin Ishtiaque
    Member since 2023 · 2 posts · 0 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. 


     Do you think you will be able to send an introduction for me to your lender who will be able to break this chorus ? 

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3y
    Quote from @Tahsin Ishtiaque:
    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. 

     Yup! I will reach out to you now

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  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    3y
    Quote from @Tahsin Ishtiaque:
    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. 


     Do you think you will be able to send an introduction for me to your lender who will be able to break this chorus ? 


     Yes, just sent you a private message.

    0Reply
  • Amy Mitchell
    Investor · Los Angeles · Member since 2022 · 36 posts · 24 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.


     Hi Oscar,

    I'm also an out-of-state investor from California (Los Angeles), and like you, I'm looking to invest next in Ohio. Have you had any luck finding any lenders that will do deals for this range? Someone in the comments suggested Huntington Bank, which I reached out to. It seems they will fund these deals, but I couldn't close under my LLC. Please PM if you have found any lenders.

    1Reply
  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    3y

    Are you looking at conventional or something like a DSCR loan? Conventional at that amount shouldn't be an issue. $75k is the lowest DSCR/no ratio I've seen.

    [email protected]330-354-6590
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  • Amy Mitchell
    Investor · Los Angeles · Member since 2022 · 36 posts · 24 votes
    3y
    Quote from @Brittany Minocchi:

    Are you looking at conventional or something like a DSCR loan? Conventional at that amount shouldn't be an issue. $75k is the lowest DSCR/no ratio I've seen.


    I would prefer a DSCR loan. Looking for a duplex in Cleveland in the $65-$85 range, seems almost impossible to find a lender on this type of deal.

    0Reply
  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    3y
    Quote from @Amy Mitchell:
    Quote from @Brittany Minocchi:

    Are you looking at conventional or something like a DSCR loan? Conventional at that amount shouldn't be an issue. $75k is the lowest DSCR/no ratio I've seen.


    I would prefer a DSCR loan. Looking for a duplex in Cleveland in the $65-$85 range, seems almost impossible to find a lender on this type of deal.

    Gotcha! Yes, considering they usually require at least 20% down these days, a purchase price below $95k minimum is going to be tough to find DSCR financing for. Conventional financing is much more flexible when it comes to the lower loan amounts, but not being able to close in an LLC is a deal-breaker for many. 
    [email protected]330-354-6590
    Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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