Financing a portfolio of properties

[Jana Cain]

Hey BP,

I'm interested in learning more about financing options for purchasing a portfolio of properties (the properties are real, but the purchase option is 100% hypothetical at this point). The portfolio, ~12 separate properties, is a mix of SFH and MFH (< 5 units). The preliminary information I have about the potential seller is that they're seeking to reinvest in a different locale, so looking to dump all properties in location A to reinvest in location B.

Some questions I have:

• Big bank vs small[er] bank vs private lender - who, if any, would be most inclined to view this as a basket for a single mortgage? I know I've read on here of accounts of folks refinancing multiple properties they already own into a single portfolio loan, but I don't know if that's different than trying to do so at the time of purchase. I would imagine some form of performance history would be required?
• What could the financing process look like - what kind of down payment might be expected?

I'd love to hear about others' experiences financing the purchase of a portfolio of properties, and any specific land mines to look out for. For the sake of this discussion, let's assume all due diligence on the properties has been done and I've decided that a deal to purchase 2+ of the properties is worth pursuing.

Thanks!