Less than 50 % LTV equity loan investment property

Financing, Hard Money Lenders, Private Money
1

Purchased & rehabed my first property with all cash in 2008.
Plan was to flip it but have decided to rent. Had it on the market for a while, and tried to pull some cash out shortly after taking it off. Was told then it would have to be off the market for 6 months before they could loan on it.

Tried today at personal bank (PNC) and now they dont make loans on investment properties. Banker told me he could do an unsecured loan but not a secured investment property loan??? what is going on with the banks, know wonder there in trouble. If anyone can guide me in the right direction to find a non hard money lender for an investment property loan i would appriciate it. Maybe im looking into the wrong product?(equity loan or something else)

Appraisal Value $58,000
rents $575
mortgage $0
loan amount needed less than 50% LTV (APROX $20,000)

2

Have you tried all the local banks in your area? Some in my area don’t do NOO loans. Some do. I suggest you start at the top of the list in the phone book and contact all of them.

3

If I hear of one more problem with banks I think my head will explode. Unless you have a personal relationship with the VP of the bank your chances of getting investment property loans that make sense is difficult. Most investors have gone to private money lenders for these types of loans. If you build your reputation on solid ground then you should be able to find people in your area that want more than 3% interest on their cd’s or ira’s or 401k’s . Recruit 4 or 5 of these people with 50-100 g’s each and you never have to worry about financing AGAIN. It is going to be a long while before banks start treating us like customers again so adapt and get on with investing.
redhawk

4

That loan amount is also very small. So the risk vs. reward is much higher. Redhawk is right you need to start building a relationship with a local banker. Move all your checking and savings to that bank. Stop in and visit often. Take him/her to lunch and talk over your plans. After awhile things will start to happen for you.

5

Thanks for the input. I realize its not a huge loan amount. Guess my next question would be if I were to use a hard money lender for this situation what would be the normal rate and terms. Property is in Columbus OH.

6

your income on the property is to low for a bank if you can find away to raise the monthly income on the property they will come to you banks are greedy like that . make the property an assistant living home or shelter of some kind and your monthly income on the property will triple.the banks will come to you

7

$575/mo on a 20k loan is not too little. If the property is actually still worth 58k in the current market, that’s just an added comfort bonus for the bank.