Portfolio loan: Covid-19...Now Riots----RANT

[Reggie Rearden]

Here's my story:

I'm a newer investor in the Aiken , SC area. I started a portfolio loan February 14. The loan consist of a refi with a LOC against my 5 unit commercial building, 1 unit commercial building, and 1 sfh. All units are fully rented. The appraisals went AMAZING! The 5 unit building came back at 3xs more than i purchased it for. The sfh appraised at 2xs the purchase price. The 1 unit came back strong also. I have lot of equity i was getting a LOC on....and then Covid-19 happened. The week we were supposed to close, the bank called and said they were delaying the closing due to the virus and uncertainty. Everything was on hold for us.

Fast forward about 3 months:

About 2 weeks ago, the bank called and said we're supposed to close in the next couple of weeks. I received a call today and they have once again delayed closing due to the current riots and protests! Instead of having access to a substantial LOC, the bank offered me a $50K unsecured LOC for now and said we can probably proceed with the portfolio loan at the end of the 4th qrt.

This is not what i had my heart set on but at least its a start. I've been doing a lot of financial maneuvering with our properties and businesses in order to set us up for the portfolio loan. With this new opportunity, i'll definitely have to rethink my REI strategy. I really had high hopes on putting my REI gear in absolute overdrive this year. This is a little set back, but at least the bank is willing to give me an unsecured LOC.

I don't have a problem with holding out on the 2 commercial buildings. The property I was really set on doing a refi on is the sfh. I set up an LLC with hopes of doing a refi from my name into my LLC. I'll start looking for a new lender tomorrow to do the sfh refi! I wonder if there are other investors running into the same issues. From the couple of lenders i spoke to today, they both stated that loans will or may be put on hold AGAIN because the issues ongoing in the US! Hopefully this mess will end soon.