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Buying an investment property, very low home price, Where to get Loans?


I am the winning bidder of a property and I actually have the full cash to purchase.
I am just thinking, if there is a possible way for me to retain my cash and get a Loan, it would be helpful. The price of the property itself is under $32000 and I am also doing about 25% down payment.  Plus I plan to repay the loan in about 12 to 18 months.
 I dont want to pay a huge closing cost or fees associated with the loan for this small purchase.
Please advise the best options for me in this situation.  Add to it,  I am newly Self employed :)  .. 

( My last resort is family/friends, which comes with no closing cost or fees, so  will happily give them 9% interest. )
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January 14 2013 - US
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Answers (3)

Greetings People,   
    Thanks for your responses.

I have also checked with banks for Secured Loans against the cash that I already have,  but that does not really help, because then the money is blocked. That is exactly what I dont want. 
Unsecured loans an option, but that comes with 17% to 22% interest rates. An 18 months loan for my amount will cost me whopping 5000 interest.  (((No, not looking for that ))).

I have also looked for other types of financing.
Prosper.com is a peer to peer money lending. But again, it is high percentage, but easier to get and no fines for repaying earlier.   - I am condiering this as an option.

Hard Money lenders, can be a good option.  Then I will be in a hurry to repay the money so I dont pay too much interest. But this story is like loosing sleep till I repay it off..

I wish it were a lot easier.
I am just 14 months self employed.  My self employment is in the same field of work I was employed for over 15 years.

Any other great Ideas, please share!
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January 14 2013
Hi Naren,

Try searching Google for "Hard Money Lenders" in your city. To qualify for this, you just need 20%-30% down toward the purchase price of the property. The hard money lender will pay for the property in cash and you can slowly pay them back.
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January 14 2013
how long have you been self employed, where you in the same line of business prior to going on your own?  generally most lenders want to see you have been self employed for 2 years to consider it stable income.  however exceptions can be made but it needs to make sense.  like you have been in the same line of work for a substantial period of time or you were in college getting a degree specifically for that line of work.  i think this will be your biggest obstacle for financing.

do you currently have a primary residence that has equity.  if so i would go to your bank and apply for a home equity line of credit.  you should not have any closing cost.  the rate shoudl be in the 4's% depending on credit , loan to value and line amount. 

if you dont have a primary residence with a lot of equity.  i would go to your bank and apply for an unsecured loan.  i hope this helps
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January 14 2013
 
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