Need a Hard Money/Private Lender Loans Between 50-75k

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Need a Hard Money/Private Lender Loans Between 50-75k

Shea McCavit
Rental Property Investor · Indianapolis, IN · Member since 2015 · 14 posts · 3 votes

Hi BP!

I've been finding quite a few deals from wholesalers that have are priced between 50-75k. Unfortunately, I do not have currently have enough cash to buy the property outright, so I will need to rely on a hard money loan. The wholesalers I've been working with require that the closing period be 14 days or less. I found this deal yesterday priced at 55k turnkey, no repairs required, ARV 75-85k. I've called and looked at 10+ hard money lenders online, however, all them require the total loan to be at least 75k.

Does anyone know of a hard money lender who will offer loans lower than 75k and be able to close in 14 days or less? Maybe between 50-75k? My plan is to simply be able to get a very short term loan where I can close in 14 days or less and then immediately refinance with a conventional loan with a lower interest rate.

Thank you,

Shea

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y

the issue you have with small balance loans is you cant price them like larger loans.

what the public does not quite compute is that a lender in some form or fashion needs to bring in 4k in fee's per file plus the interest rate.. 

so borrowers freak out.  what 8 points.. so they will charge 2 points and then junk fee the file up so they are netting 4k .

I have owned multiple HM companies over the years you simply cannot stay in business if you do not in some manner generate about 4k per loan or more.

so if your deals will still work with 4 to 5k for the bridge loan.. then your dealing with reality.  

That's why small balance loans are so tough for most lenders or folks to get.. and why its a niche we have carved out.

find a need and fill it..

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  • Ryan IngramBusiness Member
    Rental Property Investor · Dayton, OH · Member since 2017 · 246 posts · 225 votes
    7y

    @Darrin Carey is really solid at this stuff. I'm not sure if he lends in IN as well, though.

    Neal Wolf at NCCG may also be able to help. I think it stands for North Coast Commercial Group. I can give you his contact info if you'd like. 

    0Reply
  • Shea McCavit
    OP
    Rental Property Investor · Indianapolis, IN · Member since 2015 · 14 posts · 3 votes
    7y

    @Ryan Ingram, that would be great. Thank you!

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    the issue you have with small balance loans is you cant price them like larger loans.

    what the public does not quite compute is that a lender in some form or fashion needs to bring in 4k in fee's per file plus the interest rate.. 

    so borrowers freak out.  what 8 points.. so they will charge 2 points and then junk fee the file up so they are netting 4k .

    I have owned multiple HM companies over the years you simply cannot stay in business if you do not in some manner generate about 4k per loan or more.

    so if your deals will still work with 4 to 5k for the bridge loan.. then your dealing with reality.  

    That's why small balance loans are so tough for most lenders or folks to get.. and why its a niche we have carved out.

    find a need and fill it..

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    7y

    your saying what You need.  Try phrasing it as what value you are offering a private lender.

    0Reply
  • Shea McCavit
    OP
    Rental Property Investor · Indianapolis, IN · Member since 2015 · 14 posts · 3 votes
    7y

    @Jay Hinrichs, I would pay a flat fee of 4k if that's what it took.

    0Reply
  • Morris Cohen
    Lender · Brooklyn, NY · Member since 2016 · 110 posts · 48 votes
    7y

    The best thing to do would be to pay an extra $2k (or even a little more) to the wholesaler in exchange for giving you 30 days to close. Giving a wholesaler more than they expected is always going to pique their interest. That way you have enough time to get a conventional loan. That's the cheapest and cleanest route to take. PM me if you would like to discuss further. Be careful of a wholesaler who claim the ARV is higher than what they are charging with no repairs. Especially in Indy. Many times the comps are there, but the finishes are nowhere near the same. Be very detailed when running your comps. Good luck!

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