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Answers (5)
Best Answer
- Steve Roake, "Steve Roake"
- Contributions:285
The lowest mortgage amount I'm aware of is $30,000. Many lenders won't lend less than $50,000. Smaller loan amounts are not profitable for lenders. In your case, I'd say cash is your best bet as it will also limit some of your transaction costs (no requirement for appraisal) and depending on local custom, may lower your title and closing costs (they get split in my area).
To answer your 2nd question, many lenders require at least 25% down payment for investment properties but this will vary by lender. You may want to look into hard money loans if you're planning to buy more than 1 or 2 properties. Please do your homework before taking hard money as it will cost more to borrow.
To answer your 2nd question, many lenders require at least 25% down payment for investment properties but this will vary by lender. You may want to look into hard money loans if you're planning to buy more than 1 or 2 properties. Please do your homework before taking hard money as it will cost more to borrow.
- Johnny James, "Palmdale Mortgage"
- Contributions:406
I do not know of any lenders that will finance an investment property for under $25000
- Jim Fong, "Jim Fong"
- Contributions:9
For low priced homes, the best bet of closing it will be via cash. A proof of funds print out will also be beneficial for you when presenting your offer.
If you need some more information or help in investing, I can help you with that.
If you need some more information or help in investing, I can help you with that.
- Tyler Boshart, "TyBoSellsHomes"
- Contributions:24
The key to being a real estate investor is leverage, which means putting as little money down as posssible. You have a much better chance of closing deals if you submit a POF letter along with your offer so they know you are serious and can close quickly. You must have this set up with your investor beforehand because good deals don't last long.
It might even be a good idea to partner with an investor that will provide you with this POF letter. You will have the opportunity to bid on many more deals and have the ability to close quickly which is very appealing to motivated sellers. You will not make as much on each deal when you're a partner, but you may not have gotten it otherwise.
- Ashley York, "ashleyyork"
- Contributions:17
From talking with lenders that I have worked with, I know a lot won't finance less than $50-$75k because they wouldn't even make a profit. Most rehabbers/investors I know are doing cash deals to negotiate the best prices anyways. Cash is going to be your best bet I think.
On homes of the $25K and down, Do they have to be purchased outright or is financing available?
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