Seeking Lender to lend 60-70% of Purchase price on low $ SFRs.

[Jonathan West]

Seeking advice and or connections in regards to this-

We buy SFR's in Milwaukee WI for 20-50k. We use investor capital for 20-35% of the purchase price and are looking to finance the rest of the purchase price. We could finance repairs, or we could pay for those out of pocket. Most lenders I've found aren't willing to lend this small of an amount as the loan would typically be 20-35k. We are looking for a long term mortgage preferrably or a note with a 5 year balloon.

Any thoughts greatly appreciated, we have the investor and we can find properties, just need the end lender.  Buyers can show significant reserves as well.  ($50k+)

Thank you!

[Chris Mason]

Originally posted by @Jonathan West:

Seeking advice and or connections in regards to this-

We buy SFR's in Milwaukee WI for 20-50k. We use investor capital for 20-35% of the purchase price and are looking to finance the rest of the purchase price. We could finance repairs, or we could pay for those out of pocket. Most lenders I've found aren't willing to lend this small of an amount as the loan would typically be 20-35k. We are looking for a long term mortgage preferrably or a note with a 5 year balloon.

Any thoughts greatly appreciated, we have the investor and we can find properties, just need the end lender.  Buyers can show significant reserves as well.  ($50k+)

Thank you!

 Sounds counter-intuitive, but you might have more luck by being a little more ambitious. If you like the cheap houses, great. Maybe instead of buying one at a time, buy 10 at a time (target old timey real estate investors who are retiring) and apply for a commercial blanket loan.