Atlanta, GA · Member since 2017 · 70 posts · 16 votes
I am sort of trying to look at building a single family portfolio. Finding a deal good or bad seems like next to impossible, I have been looking for few years in the 1-4m range.
Beginning to consider building single family portfolio, more options and probably spreading the risk.
I have not come across any lenders who want to lend to buy single family homes to build a portfolio, when it’s not owner occupied.
I am hoping to have an open loan, where as I identify homes I want to keep buying over a relatively short period. Not sure if this is possible Or how to go about doing this.
Hoping to get suggestions about where to look for these single family commercial lenders in Atlanta or anywhere outside.
What are the typical terms that one should expect, interest rate, term etc.
Lender · Hackensack, NJ · Member since 2016 · 1k+ posts · 372 votes
5y
Sounds like what you are looking for is more along the lines of an LOC which you will need to show a history of experience in order to obtain. You can look at portfolio lenders if you are looking to purchase singular deals or multiple under a blanket loan but there will be an underwriting process for each property that you put under contract
Rental Property Investor · Minneapolis, MN · Member since 2020 · 540 posts · 285 votes
5y
@Sanjoy V.
A commercial lender would want to see some history of success, and a BRRRR or House Hack are good examples of that. I get you could not be able to house hack (I have a family and my wife won't either), but you can BRRRR and once you have 2-3 with history of success and then being rented then a commercial lender will take a look at your history and decide your a good risk to add to their balance sheet. Maybe get in with an experienced REIer and they can show you the way.
Lender · Hackensack, NJ · Member since 2016 · 1k+ posts · 372 votes
5y
Sounds like what you are looking for is more along the lines of an LOC which you will need to show a history of experience in order to obtain. You can look at portfolio lenders if you are looking to purchase singular deals or multiple under a blanket loan but there will be an underwriting process for each property that you put under contract