All Forum Posts by: Eduardo Cambil

Thanks so much, really appreciate it, its been very helpful!!

Hey everyone,

I’m new to buying properties through owner financing, and I’d love to learn more about how these deals typically work. I’ve been looking at properties in Texas under $60K that could generate good rental income, but I want to understand the common terms and structures of owner-financed agreements before jumping in.

A few questions I have:

1. Typical Agreement Terms – What are the usual structures? For example, after a percentage down (e.g., 10-20%), how many years are typically negotiated for the remaining payments? Do most sellers prefer shorter terms (5-10 years), or can you actually structure something close to a 30-year term like a traditional mortgage?
2. Interest Rates & Amortization – What kind of interest rates should I expect? Are most deals fully amortized, or do some sellers expect a balloon payment after a certain period?
3. Finding Owner-Financed Deals – Where are the best places to find owner-financed properties that make sense as rental investments? Any marketplaces or direct-to-seller strategies that work well?
4. Avoiding Banks with Long-Term Financing – Are there any deals structured for long-term (20-30 years) owner financing that completely avoid banks? If so, how common are they?
5. Red Flags to Watch For – Any pitfalls or warning signs I should be aware of when negotiating these deals?

I’d love to hear from experienced investors who have structured creative financing deals through seller financing. If you’ve done deals like this or know of opportunities, I’d appreciate any insights!

Thanks in advance!

Eduardo Cambil

Hey everyone,

I’m new to buying properties through owner financing, and I’d love to learn more about how these deals typically work. I’ve been looking at properties in Texas under $60K that could generate good rental income, but I want to understand the common terms and structures of owner-financed agreements before jumping in.

A few questions I have:

1. Typical Agreement Terms – What are the usual structures? For example, after a percentage down (e.g., 10-20%), how many years are typically negotiated for the remaining payments? Do most sellers prefer shorter terms (5-10 years), or can you actually structure something close to a 30-year term like a traditional mortgage?
2. Interest Rates & Amortization – What kind of interest rates should I expect? Are most deals fully amortized, or do some sellers expect a balloon payment after a certain period?
3. Finding Owner-Financed Deals – Where are the best places to find owner-financed properties that make sense as rental investments? Any marketplaces or direct-to-seller strategies that work well?
4. Avoiding Banks with Long-Term Financing – Are there any deals structured for long-term (20-30 years) owner financing that completely avoid banks? If so, how common are they?
5. Red Flags to Watch For – Any pitfalls or warning signs I should be aware of when negotiating these deals?

I’d love to hear from experienced investors who have structured creative financing deals through seller financing. If you’ve done deals like this or know of opportunities, I’d appreciate any insights!

Thanks in advance!

Eduardo Cambil

 That'd be great!!!

That makes a lot of sense, and I completely understand why lenders avoid these smaller loans due to fixed costs and lower yields. The numbers just don’t work in most cases, which is why the closing costs feel disproportionately high.

That said, my goal is to leverage debt to scale quickly, rather than using my own cash on each deal. Since I’m a foreign investor and don’t have access to financing tools like a 401(k) loan or traditional U.S. credit history, I’m trying to figure out what other options are available for financing properties in the $50K range.

If traditional lending isn’t viable, I’d love to hear about creative financing strategies. Does anyone have experience with:

• Portfolio lenders that would finance multiple low-cost properties under a single loan?
• Local banks or credit unions that are more flexible with smaller loans?
• Seller financing or private lenders willing to work in this price range?
• DSCR loans or other investor-focused products that might apply here?

I’d really appreciate any insights or recommendations. For those of you who invest in low-cost properties, how are you financing them efficiently?

That makes a lot of sense, and I completely understand why lenders avoid these smaller loans due to fixed costs and lower yields. The numbers just don’t work in most cases, which is why the closing costs feel disproportionately high.

That said, my goal is to leverage debt to scale quickly, rather than using my own cash on each deal. If traditional lending isn’t viable in this price range, I’m open to creative financing strategies.

Do you (or anyone else here) have recommendations on alternative approaches? Maybe:

• Portfolio lenders who would finance multiple low-cost properties under one loan?
• Local banks or credit unions that might be more flexible on smaller loans?
• Seller financing or private lenders who would work in this price range?

I appreciate the insights—just trying to figure out the best path forward for these kinds of deals!

I totally get that hard money lenders typically focus on short-term loans for quick turnarounds, but my goal is a bit different. I do have the funds for down payments, but since I want to buy multiple deals like this one, I prefer to leverage debt rather than tying up all my capital in just a few properties.

By using financing, I can scale faster, acquire more properties, and maximize returns while keeping my liquidity intact for additional opportunities. If there are any lenders (hard money or otherwise) that offer longer-term financing on lower-priced properties ($50K or less), I’d love to hear about them!

Open to creative financing strategies as well—any recommendations?

Looking for Hard Money Lender for $50K or Less – 10-30 Year Mortgage?

Hey BiggerPockets Community,

I’m on the hunt for financing options for properties priced at $50,000 or below, and I’m running into some roadblocks. I’m hoping someone here has insights or recommendations!

What I’m Looking For:

• Loan amounts $50K or less
• 10-year or 30-year mortgage terms (not just short-term fix & flip loans)
• Ideally 100% financing or very low down payment
• A lender that finances buy-and-hold rental properties

What I’ve Found So Far:

I’ve come across a few lenders like RCN Capital, EquityMax, and some credit unions, but they either:

• Have high closing costs ($3K-$5K+ on a $30K loan, which is crazy)
• Only offer short-term hard money loans (12-24 months)
• Require large down payments that don’t make sense for small deals

I’m open to hard money lenders, DSCR loans, or any creative financing solutions that could work for these lower-price-point properties.

Questions for You All:

• Do any hard money lenders offer 10-30 year terms on $50K or lower loans?
• Who’s financing buy-and-hold rentals at this price point?
• Any strategies to reduce these insane closing costs?
• Have you successfully borrowed at this price level? If so, how?

I’d love to hear from investors who have tackled this issue before. Any referrals or experiences would be super helpful! Thanks in advance.

Looking forward to your insights!

Thank you for your insight! I completely understand the caution around OTC properties and why they often end up unsold at auctions. I agree that many of these properties may not have immediate value, but I'm hoping to find some gems that could be flipped for quick profits, especially in more rural or undervalued areas.

That’s exactly why I’m looking for a coach or mentor – someone who has experience navigating OTC deals, can help me avoid the pitfalls, and guide me in identifying the properties that do have potential. I realize it’s a challenging path, but with the right guidance, I’m optimistic that it could work.

If anyone knows someone who has successfully done this, I’d really appreciate a recommendation! Thanks again for your feedback!

 I do understand, but sometimes a lot of deeds go on auction the same day, in different counties at the same time, meaning that a lot of the properties could not be bought. What I'm mainly looking for is OTC Land to sell it quickly for quick profits. If anyone knows of a coach/mentor who can guide me through this process I'll me more than grateful!!!