Financing small projects

[Cody C Floyd]

I am currently looking to rehab a property in my home town.  I will pay cash for the house but will need lending to complete the rehab. I have talked to several hard money lenders and all have stated they need a larger than 100k loan to even consider it.  This property rehab cost with property will be somewhere around the 60k range.  Does anyone have any experience in getting financing for a project under 100k?

[James Leigh]

@Cody C Floyd Hi Cody! My thought process on this would be to borrow the $100k if they’re offering it depending on Fee’s and costs. I would look at it like this; Borrowing $100k because that’s the minimum. Using what I need to get the project done, with a little peace of mind knowing I have surplus cash just in case costs run over. If everything works out perfect and $60k is all that’s needed, the other $40k can be paid back immediately to save on interest (assuming no pre-payment penalty and simple interest) then you’re basically only borrowing the $60k that you originally needed and only paying interest on the extra $40k for however long you plan to hold it until paying it back.

That’s how I would look at it, again, assuming the Fee’s and costs do not make it feasible.