Loan w/ 30-year amortization for a $75k property?

Loan w/ 30-year amortization for a $75k property?

Investor · Columbus, OH · Member since 2020 · 28 posts · 20 votes

Hey all, I have a duplex that has > $900/mo NOI, and am looking for a commercial loan with a 30-year amortization. It's in an LLC, so it has to be a commercial loan, but I'm having trouble finding anyone who will loan on a property worth less than $100k. I have a loan on it with a local bank currently, but it's an adjustable rate loan (after 5 years) with a 13-year amortization. The value is only $75k due to where it is (rural Ohio).

Anyone know of a lender who will loan on lower value (but still solid and cash flowing) properties?

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Rental Property Investor · Columbus, OH · Member since 2017 · 31 posts · 35 votes
5y

@Jason DeVelvis I would reach out to @Chris Wharton he's great! He may be able to help you out! or at least provide some insight. 

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  • Rental Property Investor · Columbus, OH · Member since 2017 · 31 posts · 35 votes
    5y

    @Jason DeVelvis I would reach out to @Chris Wharton he's great! He may be able to help you out! or at least provide some insight. 

  • Investor · Ontario · Member since 2015 · 486 posts · 250 votes
    5y

    Hey @Jason DeVelvis I have a lender for under 75k...Many lenders have the 100k minimum. Most all others have the 75k loan minimum. You need to work with someone who can lend on properties worth under 75k for when you appraise under that amount. 

  • Chris WhartonBusiness Member
    Lender · Columbus, OH · Member since 2020 · 85 posts · 73 votes
    5y

    @Jason DeVelvis might be tough sledding to find that commercial note which meets all your needs. From the sounds of it you're situation is prime for a conventional loan with the only caveat being the LLC. Any chance you could just deed out to yourself and take the note personally? Post closing you could deed back to the LLC. If the goal is to keep debt and financed properties off you individually then I get it, just a thought.

  • Real Estate Agent · St Petersburg, FL · Member since 2019 · 320 posts · 182 votes
    5y

    Have you checked out any non-QM lenders to see if your situation could qualify for a DSCR loan or similar product?

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