I’ve been calling around looking for investment property loans to various lenders. Some of them will state one thing, but then when I call back to speak to someone else they say something else. I am mostly trying to find a lender that has a low minimum loan amount.
One guy at Bank of America said they had a $25,000 minimum , but then another said it would be difficult to do under 40-50,000 as it’s basically not really worth it to do the loan. Could policies vary depending on the office when it’s a huge bank like BOA?..
Anyone else experienced this?..It was also in a short time frame within a week
Also anyone know of any good lenders for investment property with low (like under 40k) minimum loan amounts that lend in CA?
You need to visit small local banks. We tried Regions. The lady we talked to reviewed our portfolio and financials. She claimed they would be willing to fund deals for us. The next day she called back and said the caveat was that she couldn’t do loans under $50K. I told her I couldn’t change our business model to fit her lending requirements. The problem with the larger banks is that the person you’re talking to has eight bosses (ever seen Office Space?) and cannot make decisions on their own. Our Realtor is friends with a loan officer from another Regions branch. She told him she had the authority to approve up to $100K loans during the housing boom. Now she has to have approval from three levels of management above her in order to lend even small amounts like $20K.
Some of the local banks won’t want to do loans like this either, but others probably will. You just have to keep shopping around. Right now we have a banker who is just waiting to fund a package deal with a few houses. We just have to get one under contract to add to the one we’re working on now.
Yeah I guess I just have to call around. I think some of them are hesitant because they aren’t making as much money on the loan…it’s kind of frustrating they have this mentality…money is money especially since these banks have received so much in “bailout money” , but that’s a whole other story.
It looks like PenFed (Pentagon Credit Union) has a 25,000k min on investment mortgages…I applied online, but they said they had to contact me further for some reason, but not saying I was denied…so I guess we’ll see
It’s kind of funny how banks will throwing out money for overpriced properties , but now don’t want to lend when prices are much lower ,especially since the properties cash flow better , which means the borrower is less likely to default.
Some are just scared of NOO properties. If you have problems and can’t pay one of the mortgages, which one would most people default on first?
If they mention about not making much money on the loan, see if any of them are willing to do a blanket loan for a couple or more.