How do I acquire a loan for 25k to 35k
Rental Property Investor · South Ozone park, NY · Member since 2014 · 47 posts · 10 votes
How do I acquire a loan for 25k to 35k
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Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
3yQuote from @Deodat Ramdat:
Hello all
I saw a few properties in Detroit Michigan for 25k to 35k. How can I acquire creative finances for those properties. Please advise
Thanks
Deo
Deo, PLEASE do not buy these properties.
I am the BP resident expert on Detroit. I own 12-doors there and live in California now. I'll be in Detroit from April 26-29th if anyone wants to hang out.
These properties have a high probability of ruining you. Also, nobody is financing them. Nobody. You need to have a house value of at least $67k to get conventional loans right now.
32 Replies
- 3yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Kai Kopsch:
Quote from @Jay Hinrichs:
Quote from @Kai Kopsch:
Quote from @Jay Hinrichs:
Quote from @Kai Kopsch:
Establish a relationship with local credit unions and some big players like AMEX. First, Savings accounts let them season 6 months on open business checking/credit cards and afterward get a business line of credit. I know people have a 150K Small Business Line Of Credit with Kabbage Payments, LLC (AMEX), with no documentation.
are those are CC rates ?Amex has regular bank accounts and business lines of credit. This lending over Kabbage Amex small business has nothing to do with their CC department. But sometimes, it makes sense to use a CC for smaller projects. I finished my last project with a CC from Amex Blue Business plus 30K 0 APR the first year and 2 x bonus points plus a signup bonus.
I will have to check that out although 30k is not much to play with but I can see for small projects that would be quite helpful.. does this credit report to FICO and if you utilize it all it drops your score a lot ?? I know I have seen that happen to folks when they do this and try to refi and their lower scores mean higher refi interest. But for flipping it would have no impact if your not needing your fico at the time.
Amex business CC does not report to your utilization. The 30K was just an example of what limit I have on my Blue Bussiness Plus. They start mostly with 10K; after 3 months, you can ask for an increase they go max 3X. For some CC, you can get up to 1K bonus I always get a new one for a flip. They are a relationship Bank I only got one inquiry for now 7 Cards. Important is to start slowly and call them to let them know what you do; they love to work with RE Investors and Realtors you can get easily $200K over time with multiple CC.
to get the zero interest though dont you have to then keep getting new cards with the intro deal ? and the cards you have once they get over a year old your now paying interest if your carrying a balance. I guess it depends on if that interest is at CC rates or todays bank rates which are usually 1 over prime these days for unsecured LOC at least my unsecured bank LOC's are 1 over prime.. had a nice run there while it lasted.. of course when rates were super low banks generally had a floor rate as well. - Member since 2023 · 13 posts · 2 votes3y
@Chris Davidson I havent played roulette in many years and don't plan to anytime soon XD
Any advice on resources or platforms for securing private money (other than BP)? - Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes3y
@Deodat Ramdat personal loan
- Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes3y
Quote from @Account Closed:
@Chris Davidson I havent played roulette in many years and don't plan to anytime soon XD
Any advice on resources or platforms for securing private money (other than BP)?Figure out the amount you need and that will help you. If you are looking for 25-50k does a friend have a HELOC or LOC they want to make a little more money on? Friend tired of the market, and wants to diversify a bit? Hit up some local REI groups and see if there are any players in your area. Trying to get six figures will be a different audience over low fives. If you are looking for larger amounts if you find a group with self direct 401k could source larger amounts. Also find investors exiting the market as should have capital looking for a home.
Best of luck!
- Member since 2023 · 13 posts · 2 votes3y
@Chris Davidson Currently in Mexico and the amount is around $80k USD so maybe you're right: specifically looking for locals and expats already involved in investing in RE here in the area could be my best bet.
Thank you!! - Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes3yDefinitely, Find where the expats that aren't living super tight budget hangout, and get to know them. Doesn't matter if they are in RE or not. If you find an older retired couple that have money sitting in the market getting hammered, and you can give them a better return they might be open to it. What makes private money harder now is bonds and lower risk debt actually has decent returns thus you are gonna have to pay more for the money.
Quote from @Account Closed:
@Chris Davidson Currently in Mexico and the amount is around $80k USD so maybe you're right: specifically looking for locals and expats already involved in investing in RE here in the area could be my best bet.
Thank you!! Acquiring creative financing for low-cost properties can be challenging, but there are several options to consider:
- * Private Lenders: Private lenders can be a good option for financing low-cost properties. These lenders are often more flexible with their lending criteria and may be willing to work with you even if you have poor credit or limited funds.
- * Owner Financing: You can negotiate with the owner of the property to provide financing for the sale. This can be a win-win situation for both parties, as the owner may be willing to provide financing at a lower interest rate than a traditional lender, while you can avoid having to come up with a large down payment.
- * Hard Money Loans: Hard money loans are short-term loans that are typically used by real estate investors to finance property purchases. These loans are often easier to qualify for than traditional bank loans and can be a good option for low-cost properties.
- * Crowdfunding: Crowdfunding can be a good way to raise funds for low-cost property purchases. You can create a campaign on a crowdfunding platform and ask investors to contribute funds to the purchase.
- * Lease Option: A lease option is an agreement where you lease the property from the owner with the option to buy it at a later date. This can be a good option if you don't have the funds to purchase the property outright, but want to secure the property for future purchase.
It's important to thoroughly research each financing option and carefully consider the pros and cons before making a decision. You should also consult with professionals such as real estate agents, attorneys, and financial advisors to determine the best approach for your specific situation and goals.
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