Acquiring financing for a rental portfolio

[Austin Durham]

My grandparents have 11 single family properties in Arkansas they would like to sell all at once. They arent interested in splitting them up. I would like to find a way to acquire them and keep them in the family, however I'm pretty uneducated when it comes to buying this many properties. Can I get some help on what to expect when financing these properties ? They want 1.25M and they generate 11k/month in rent. Upon last appraisal they all appraised for around 135k a year ago.

What types of loan?

Expected cash down?

What a lender would expect from me as far as experience?

Really just anything I should know before speaking with a lender. Or if their are any other options I may not be aware about. Just assume I know nothing because I basically know nothing lol.

[Stephanie P.]

Originally posted by @Austin Durham:

My grandparents have 11 single family properties in Arkansas they would like to sell all at once. They arent interested in splitting them up. I would like to find a way to acquire them and keep them in the family, however I'm pretty uneducated when it comes to buying this many properties. Can I get some help on what to expect when financing these properties ? They want 1.25M and they generate 11k/month in rent. Upon last appraisal they all appraised for around 135k a year ago.

What types of loan?

Expected cash down?

What a lender would expect from me as far as experience?

Really just anything I should know before speaking with a lender. Or if their are any other options I may not be aware about. Just assume I know nothing because I basically know nothing lol.

Not that I like turning business away, but have your grandparents put the properties in an LLC. Add you the LLC as a member. Refinance the properties using portfolio money that only takes your credit and the assets into consideration. You should be able to get 70-75% loan to value.

They will have to sign a paper allowing you to do the refinance, but once they do that, they aren't responsible for the loan, your LLC owns the properties and the properties stay in your family. Feel free to PM me with additional questions.

Best of luck

Stephanie