Looking for Atlanta hard money loan ($30k price, ~80% LTV)

5 Replies

I am looking for a recommendation for a hard money lender who will do a $24,000 loan on a $30,000 house in Atlanta. From what I've seen the lenders all have minimums that are higher than $24k. I need to be able to close in December.

Does anyone know of a group who would do a loan on that amount?

Hi Paul,

I am not understanding why anyone would loan on such a property. You are already at 80% LTV and that is if your numbers are accurate. LTV could be much higher. There are certain fixed costs when do closings and a loan so the smaller in price a property it is the higher your closing costs as a percentage of the sale.

Usually a 24,000 property is in a poverty type area with increased crime and increased risk to the HML's capital.

Loaning out for instance 80K on a high quality area for a rehab when the purchase is 60% LTV for a resale into the mid 100's makes for better security for a lender.

Going to friends for a partnership or family for the money but if you are buying a property worth only 30k I do not see much of an upside for an investor or a lender. 

@Paul Smythe Nope ... at least not as presented.  There are some that will lend on houses that are rented for $800/mo and would be worth $40 - 80k as a result.  They'll also lend rehab money and convert to a 30 year.

You might want to start this thread again and get feedback on the deal and your approach. 

I apologize as I was using the incorrect terminology. The ARV of the house is probably over $50k, renting for $700/month. I'm looking for a loan that is 80% of the purchase price of $30k.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you