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
Will be hard to find a private lender willing to make a loan for such a long time. Can you not get approved for conventional financing?
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!