Specialist · Indianapolis, IN · Member since 2008 · 41 posts · 11 votes
I've been very successful with purchasing REO's for 10k-25k and renting them out for $625-$700 to sec. 8 tenants. I've used credit cards with fixed rates and Bank of America to mortgage the properties, but these types of loans are no longer available. Are there any banks that will finance non owner occupied rentals for 10k to 25k? Thanks, Ritch
Real Estate Investor · Indianapolis, IN · Member since 2009 · 161 posts · 46 votes
17y
Hi Ritch,
Sorry it took a while to get back with you... Here is a contact at US Bank. You can also contact Doug Thompson at Community Bank in Westfield. I do not have his number handy so I will get that to you at a later time. Contact Melissa at US Bank:
Here is a run down on their program...
Melissa says they’ll do at least 70% with nearly all qualified people and up to 80% LTV with the right person and the right deal. They do 20 year am’s with a five year fixed interest rate which is in the mid 6 to mid 7% range right now.
They are strictly a cash flow based lender, so assets don’t matter too much – the property needs to cash flow on it’s own and the borrower either personally or as their company needs to cash flow too. If a person/business cash flows well enough, that can offset a underperforming property.
They are fine with doing out of state borrows for assets that are local to where they have a branch presence.
If this doesn’t make sense or you have any questions, just let me know…
Melissa A. Matney
US Bank
Commercial Banking
800 E. Main Street
Richmond, IN 47374
Real Estate Investor · Portland, OR · Member since 2009 · 660 posts · 244 votes
17y
If you have a good relationship with a portfolio lender (i.e. local credit union) that might be an option .... going to be tough considering it's non-owner occ and under $50k.
Specialist · Indianapolis, IN · Member since 2008 · 41 posts · 11 votes
17y
Dustin,
I left you a message last week about getting the info for portfolio lenders in Indy. If you will, please send them to my email at [EMAIL REMOVED]. Thanks, Ritch
Investor · Fort Wayne, IN · Member since 2009 · 391 posts · 257 votes
17y
Ritch,
Markle Bank here in the Ft Wayne area will give commercial loans for these properties. In fact, they will even do a blanket loan. Don't know if they work the Indy area or not.
My contact there is Andy Marshall.
He is presently working with some friends of mine that are buying 3 of our properties on a blanket loan.
His e-mail is: [REMOVED]
I am not sure if I can leave that e-mail in or not. If they strip the e-mail before you read this. Send me a colleague request and PM me and I will send you his data.
Real Estate Investor · Indianapolis, IN · Member since 2009 · 161 posts · 46 votes
17y
Hi Ritch,
Sorry it took a while to get back with you... Here is a contact at US Bank. You can also contact Doug Thompson at Community Bank in Westfield. I do not have his number handy so I will get that to you at a later time. Contact Melissa at US Bank:
Here is a run down on their program...
Melissa says they’ll do at least 70% with nearly all qualified people and up to 80% LTV with the right person and the right deal. They do 20 year am’s with a five year fixed interest rate which is in the mid 6 to mid 7% range right now.
They are strictly a cash flow based lender, so assets don’t matter too much – the property needs to cash flow on it’s own and the borrower either personally or as their company needs to cash flow too. If a person/business cash flows well enough, that can offset a underperforming property.
They are fine with doing out of state borrows for assets that are local to where they have a branch presence.
If this doesn’t make sense or you have any questions, just let me know…
Melissa A. Matney
US Bank
Commercial Banking
800 E. Main Street
Richmond, IN 47374
Real Estate Investor · Indianapolis, IN · Member since 2009 · 161 posts · 46 votes
17y
No Problem... I have a few other lenders as well and some Local HML's... Start here and if these do not work out I will get whatever info you need on these other lenders... Here is the general number for Doug-[REMOVED]... Good Luck and let me know if you have anything for sale too, thanks...
BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
17y
Guys -
If anyone else on the thread posts their contact info in a post (needs to be in your signature) OR if you post the contact info of someone else, we will close this thread.
You wouldn't want people to post your contact info all over the place, please do others the same courtesy by not sharing their info. If you need to do so, do it one on one.
Real Estate Investor · Indianapolis, IN · Member since 2009 · 161 posts · 46 votes
17y
Josh,
While I agree with you about posting personal info, the numbers that I put on here were for the business, not for the individual. The number you took off was for a bank and not for a member on this site...
Real Estate Investor · waltham, MA · Member since 2009 · 212 posts · 8 votes
16y
hi all,
I am in Massachusetts, can I have Melissa from US Bank info so that I can reach her to see if she can help. I am looking to pick couple cheap commercial propertial in a blanket loan
Real Estate Investor · ten mile, TN · Member since 2009 · 1k+ posts · 374 votes
16y
Dustin, it is still up to a business to advertise themselves in an approiate manner. Numbers and contact information has a way of getting posted incorrectly by mistake.
Just like trying to contact the white house using .com instead of .gov
These things do have a way of harming ones reputation and Josh wants the reputation of Bigger pockets to remain unscathed. The contact information should be given out in a PM message to each other and not in the open forum for these reasons and more.
You could possibly finance all of the investment properties that you currently own in a blanket commercial mortgage, if either they are titled in an entity (LLC, Corp), or can be retitled, if there are enough to make it worth while for the financing source. This would free up money to do more deals. Additionally, you could use a blanket mortgage to buy several more.
I have thought of doing the same thing,but haven't gone through with it. I get offers for 12- 16 months 1.9 % financing (cash advance), but just worry about "what do I do after the 12 months" if the banks with their credit crunch will not be able to mortgage them? How has it worked out for you? Please keep us updated.
Specialist · Indianapolis, IN · Member since 2008 · 41 posts · 11 votes
16y
Mike,
I got in touch with a broker who works with 2 banks that will refi for a 30yr term. I'm getting some info together and meeting with him next week. I'll let you know if they have contacts in North Carolina. Ritch
Commercial Lender · Ocala, FL · Member since 2008 · 60 posts · 4 votes
16y
If you have excellent credit & provable income, along with a track record of REI success....create a Business Plan, & take it into your Local Banks & try to secure a "Business Line Of Credit"....similar to a "Builders Line Of Credit", but, you can use the Line Of credit, like a checking account, & just buy & sell, within the account. These are very hard to find now, but, they are still out there. You may have to try all of your Banks & Credit Unions to find one. Also try asking at your local REI Club & see if they can suggest a Bank.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Hi, I might jump in here and suggest you check out PENSCO TRUST, this is an institutional lender that makes real estate loans from self directed IRAs. Check it out, this is not an endorsement, just an interesting source of funds. Good Luck, Bill