Conventional 30 year Investor loans under 40K loan amount

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Conventional 30 year Investor loans under 40K loan amount

Adam A.
Real Estate Broker · Marietta, GA · Member since 2011 · 28 posts · 13 votes

Does anyone on the forum have any connections or suggestions for a Georgia lender that can write conventional 30 year investment mortgages under 40K? I have a property under contract at 47K that is a pretty good deal in good condition, with 15-20% down I am looking at a loan amount of 37-40K. 4-5 small time lenders I have already reached out to do not go under 50K.  

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Account Closed
Member since 2014 · 44 posts · 10 votes
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Hello All,

I can help with these type of loans as my bank (Mars National Bank) does not have a minimum loan amount. If we can do the loan we will and I don't shy away from this business and have 3 in my pipeline right now that I'm working on. As long as the property is in good shape & all other aspects of Conventional financing are in order. I am licensed to do business in all 50 states too so please PM me if you want more info.

Regards,

Tod

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  • Jassem A.
    Investor · PA · Member since 2013 · 1k+ posts · 602 votes
    11y

    PNC was going to do one for me one time and also Navy Federal.  Local credit unions might do it.

    1Reply
  • Barry Christopher
    Real Estate Agent · Pensacola, FL · Member since 2015 · 28 posts · 7 votes
    11y

    I am having the same problem here in Pensacola, FL. I am currently researching but the ones I've spoken to do not finance under 50k. Keep me posted if you hear anything regarding what we're looking for and I'll do the same. I've only been in Florida for a half year so this entire process is new to me. Good luck.

    0Reply
  • Darren Budahn
    Investor · Milwaukee, WI · Member since 2014 · 811 posts · 420 votes
    11y

    Try going to the commercial department of a local credit union or bank.  The credit union I use does not have any minimum loan amount, although you do pay higher rates and aren't going to find 30 year fixed mortgages. 

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  • Krystal Baker
    Real Estate Investor · Miamisburg, OH · Member since 2012 · 18 posts · 3 votes
    11y

    Have you considered P2P lending? I am never able to get conventional loans for the $45k properties I buy, so in the best I have used LendingClub, Prosper, and BestEgg to get the funds I need. The downside is that it's a 5 or 7 year loan instead of 30, of course. I usually pay around 10%, which isn't great, but isn't as bad as a HML with points, either. If I buy a $45k property with $10k of my own money and a $35k P2P loan, there is still plenty of money for me to turn a profit.

    Not a strategy that's going to make you get rich quickly, and I'm sure Brandon and some of the others would be horrified at the idea of using your own money, but it's better than sitting on the sidelines and waiting for a loan!

    1Reply
  • Account Closed
    Member since 2014 · 44 posts · 10 votes
    11y

    Hello All,

    I can help with these type of loans as my bank (Mars National Bank) does not have a minimum loan amount. If we can do the loan we will and I don't shy away from this business and have 3 in my pipeline right now that I'm working on. As long as the property is in good shape & all other aspects of Conventional financing are in order. I am licensed to do business in all 50 states too so please PM me if you want more info.

    Regards,

    Tod

    2Reply
  • Edwin E.
    Lender · Tampa, FL · Member since 2014 · 71 posts · 10 votes
    11y

    @Barry, I am a local (Destin) trust deed investor, or private mortgage investor.  Can you qualify for a refi once the property is yours?  If so we can talk about ways I might be able to help.  You can write me here, or view my profile.  you can also check out my website www.spearsoninvestmentgrp.com

    0Reply
  • Eddie T.
    Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
    11y
    Tod Novak can you loan to LLC and what terms?
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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    11y

    One route to go might be to consider taking out a business loan as opposed to a mortgage.  @Justin B. finances his properties using business loans and I think it has worked out well for him so far.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
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  • Heather W.
    Rental Property Investor · Atlanta, GA · Member since 2013 · 128 posts · 64 votes
    11y

    @Jerry Padilla can do these as well, I think.

    0Reply
  • Dan Hatch
    Investor · Milton, FL · Member since 2015 · 44 posts · 16 votes
    10y
    Originally posted by @Barry Christopher:

    I am having the same problem here in Pensacola, FL. I am currently researching but the ones I've spoken to do not finance under 50k. Keep me posted if you hear anything regarding what we're looking for and I'll do the same. I've only been in Florida for a half year so this entire process is new to me. Good luck.

     I have been doing cash out refi with Lisa Hudson from Synovis (coastal bank) in Pensacola, 30 year fixed. One was $45k and currently doing $65k at just under 4% 

    PM me if you want her contact info

    1Reply
  • William Allen
    Investor / Wholesaler · Nashville, TN · Member since 2014 · 1k+ posts · 667 votes
    10y
    Originally posted by @Krystal Baker:

    Have you considered P2P lending? I am never able to get conventional loans for the $45k properties I buy, so in the best I have used LendingClub, Prosper, and BestEgg to get the funds I need. The downside is that it's a 5 or 7 year loan instead of 30, of course. I usually pay around 10%, which isn't great, but isn't as bad as a HML with points, either. If I buy a $45k property with $10k of my own money and a $35k P2P loan, there is still plenty of money for me to turn a profit.

    Not a strategy that's going to make you get rich quickly, and I'm sure Brandon and some of the others would be horrified at the idea of using your own money, but it's better than sitting on the sidelines and waiting for a loan!

    Have you considered refinancing the ones you have right now under a commercial loan and bundle them together to get above the banks lower limit? That would get you a rate around 4-5% and extend your amortization to 20-30 years. It would certainly increase your cash flow over the P2P lending concept. Maybe that's what you have been doing but if not I would look into it. 

    0Reply
  • Adam A.
    OP
    Real Estate Broker · Marietta, GA · Member since 2011 · 28 posts · 13 votes
    10y
    Originally posted by @Dan Hatch:
    Originally posted by @Barry Christopher:

    I am having the same problem here in Pensacola, FL. I am currently researching but the ones I've spoken to do not finance under 50k. Keep me posted if you hear anything regarding what we're looking for and I'll do the same. I've only been in Florida for a half year so this entire process is new to me. Good luck.

     I have been doing cash out refi with Lisa Hudson from Synovis (coastal bank) in Pensacola, 30 year fixed. One was $45k and currently doing $65k at just under 4% 

    PM me if you want her contact info

     Thanks Dan, I ended up going with Synovis( Bank of North Georgia). Was able to get a 70K unsecured personal line of credit at 4.5% for two years, pretty sweet deal if you ask me. Hopefully I will be able to locate another credit line in the 100-350K range for higher end flips. 

    2Reply
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