Financing Options on Potential Property

[JP P.]

Hey BP, I'm looking for advice on options that I can pursue in obtaining financing/"money" to purchase a home that is for 22k.

Here's the background and details:

Found a home for 22k and at most it needs 2k to put into it (this is without having a central AC.) This would be a buy and hold for me and the market rental rate I figured to be a minimum at 750. Previous owner has someone in it at 900. Needless to say you can see why I want this house. My ROI is extremely high.

The trouble is how to get the 22k:

--I have at least 20% and wanted to try to do conventional and make it easy on me. (a few different lenders don't go below 50K lending on houses.

--Hard money could be an option I would like to pursue, but because of the market the house may not value and or sell for higher than 30-35k on ARV.

--Straight bank loan for 20K; and it seems that most banks that I've contacted don't do general loans unless it's collateral against some other property.  (my other properties don't have available equity to draw from to make the 22k.  And I say that to say I don't feel comfortable borrowing against my other homes that cuts down their respective cash flow.)

--Private Lending; now this is an area i haven't stepped into and i'm learning about.  I think this might be a good option, but I'm not sure how to structure the terms that would entice fund'ers and still have both ends benefit.

--Non Recourse Self Directed IRA loan; I could put this house into my SD-Roth IRA and end up having to put down 40%+ on the house to secure a loan (that's if they would lend that low of an amount to purchase the home)

Those are the only options I can think of and I'm not sure which is the best, or looks more feasible and successful to in use to acquire the home.  BP's help me out.....Any advice helps.

[Rachel Fazio]

I don't know if you've already done this, but the potential trouble with funding small deals led me to get a personal line of credit in case I need to pull cash quickly for one. I've heard that 25k is a common limit, but of course interest rates are a little high, close to what you would get from a hard money lender in some cases since it's basically an unsecured loan. My credit union opened one for me the following business day of applying, so that was quick, and I can transfer money from it instantly online.