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?
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.
when you say it's a $30k house, is that ARV?
If not...what is the ARV?
@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.
We lend in Atlanta at 65% ARV with no minimum loan amount. Sllending.com
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