Hard money loan under $50k

[Brandon Graham]

Hey everybody, I have found a great deal in my hometown of Columbia SC. It's a duplex that's listed for 50k. The sellers are motivated to sell. The property already has two tenants which yeilds $1170 per month. So the cash flow is definitely there. Rougher neighborhood but a side of town I am familiar with plus I would have a property manager managing the property. I want to go the HML route but I just cannot find a company willing to loan for under $50k and most cases $75k. Plus the property doesn't need major rehab work which kind of rules out the BRRRR method. It's essentially turnkey minus the usual maintenance such as new carpets and paints. My question is should I just try to find the money, pay the cash, then immediately cash out refi? Because I do have a heloc but it's only for 20k. I would have to take out a personal loan plus some cash reserves but I honestly think that this deal is worth it. Or do you know of any other ways that make sense? I don't think that conventional loan route will work because I think that the seller wants to sell quickly especially at this great price. I would love to be able to find a HML lender willing to loan so that I may refinance after the seasoning period. Any suggestions? Thank you in advance for your help!

[Kerry Baird]

I’d ask the current owners to carry back a mortgage, say you make a down payment and agree to pay them 5 or 6%.  The benefit to them is that they receive income over time, and the benefit to you is that you don’t need to pursue bank lending.  Inform them that the property is difficult to obtain bank financing, and ask if they would be the bank for you.