Here are the top 5 small loans we fund to our clients.
Most real estate lenders won’t touch small loans. Anything less than $75,000, and you’ll find many institutions won’t even fund you.
But for the last 23 years, we’ve helped thousands and thousands of investors fund billions of dollars – and one of our specialties is small loans.
We understand the important role smaller loans play in your real estate investing career. Let’s go over 5 types of small loans you might find a need for in your investments.
1. “Finish a Project” Small Loans
The first kind of small loan we fund is what we refer to as a “finish a project” loan.
It’s exactly what it sounds like: you run out of money on a project, and you need a bit more to get it over the finish line.
We help people with:
- New builds that don’t have the money to finish.
- Started flips that need a few more thousand dollars to get to market.
- Rentals that require more capital to get to a rentable state.
We can fund these loans without touching your first mortgage on the property.
2. Small Town Loans
We help a lot of clients from small communities, or who invest in small towns. A lot of properties in these areas are available for less than $75k, so other lenders aren’t interested in funding them.
Just last month, we funded 3 properties like this. The number for each of them broke down like this:
- Purchase: <$40k
- Rehab: ~$20k
- All-in: <$60k
- ARV: $100k – $110k
There is a lot of money to be made on properties like this, yet most lenders wouldn’t fund this deal.
We don’t care if a property is rural or agricultural. If the numbers make sense, our loan is secure, and there’s money to be made for you, then we’d love to help you with small-town loans.
3. Gap Funding
Another loan we commonly do is gap funding.
Gap funding can cover a lot of different parts of a project. Anytime there’s an expense on an investment project that your primary loan doesn’t cover, a gap loan can come in to save the day.
These loans include:
- Down payment (usually 20-30%)
- Rehab costs (especially if your primary lender won’t include that in your LTV)
- Carry costs (like mortgage payment, insurance, taxes, etc)
If you don’t have (or don’t want to use) your own capital or other lines of credit, we can come in with small loans to fill in these little gaps in your project.
4. Credit Usage Loans
Another popular loan we do is an “Improve Your Credit Score” loan.
Credit usage is a common sore spot for many real estate investors’ credit scores. Maybe you use your personal credit card to fix up your properties and pay it off once your flip sells or refinances.
In the meantime, you’re using up a high percentage of your personal credit limit. This usage negatively impacts your score, which in turn wrecks your chances of getting a great loan for your next project.
Where our loans come in is:
- You take out a private loan with us.
- Use those funds to pay off your personal credit cards.
- Your usage goes down dramatically, improving your score so you can get approved for other loans.
5. Cash Flow Loans
The last of our popular small loans are the type that creates cash flow for your budget.
If you need to make payroll, compensate a contractor, get some extra capital for more growth, or any other business expense, we can provide a loan for that.
In this case, you don’t even need to be a real estate investor. You just need to own a piece of property that we could secure the loan with.
How a Small Loan Works
All of these loans work because you use a current piece of real estate to secure it. Our primary concerns are keeping the loan safe and making you money.
We don’t worry about your credit score, income, or experience levels. As long as they’re secured, we can get you small loans.
Have questions about how these small loans work? Need a smaller loan? Reach out at Info@TheCashFlowCompany.com and we’d love to see how we could help.