rental for 50k -75k

2 Replies

Looking for finance for a rental properties 75k and down- what are the normal guidelines for private lending on rentals----- wanting to hold the rental for at least 10 years maybe more

Hi @Quinton T. ,

There are a variety of Private Lenders / Hard Money Lenders who will close on deals at the terms you're requesting.

The biggest challenge with lower loan amounts (especially under $50k), is that you'll typically be paying a very high rate compared to the larger loans.

That's because most Private Lenders have some type of "minimum origination fee" ... For example: while they might normally charge 2 - 4 Points on the front end (which would be $1,000 - $2,000 on a $50k loan)...

That might be overridden by their minimum origination fee of $2,500 - $3,000+ (which amounts to 5% or 6% on the front-end!). That would be in addition to the ~8% - 12% you'd pay as an annual rate.

Feel free to reach me directly if you have any specific questions. All my contact info is in the signature, and you're welcome to connect & Direct Message me on here.

Thanks, and good luck!

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