Sub 50K lenders?

[Karolina Powell]

I do a lot of deals that are under 50K that need no rehab. I only know of one lender out there that will do 20+ year DSCR sub 50K loans and I hit my 10 loan limit with them. Are there any lenders that will go this low? I understand that it doesn't make sense for most of them and that I should just pay cash but if I can take 50K and buy 4 places versus 1 place, I have to investigate the options. My husband has W2 income so we can look at full doc options too. Let me know, thanks!

[Christian Wamsley]

Karolina — sub-$50K long-term DSCR is definitely a tough lane. Most lenders struggle to make the economics work at that size.

A couple strategies I’ve seen work:

1️⃣ Local / community bank commercial loans
Some smaller banks will treat these as commercial notes instead of DSCR. You'll typically see:

• •20-year amortization

• •5, 7, or 10-year balloon

• •Relationship-based underwriting

If you or your husband have strong banking relationships, that can sometimes open doors that national lenders won’t touch.

2️⃣ Small private note structure
At that size, sometimes it’s less about “finding a lender” and more about structuring it attractively for an individual investor looking for long-term yield.

Example:
$45,000 funded at 8% amortized over 20 years

• Payment ≈ $377/month

• Total paid over 20 years ≈ $90,480

• Total interest earned ≈ $45,480

For someone looking for steady income secured by property, that can be compelling — especially compared to CDs or bonds. It really comes down to how cleanly the deal and collateral are presented.

You’re thinking about leverage correctly though — deploying $50K into multiple assets vs one is a smart investigation.

Hope that gives you a few angles to explore.