Portfolio Lending

[Caleb Charles]

Hi BP, I am curious to know about portfolio lending. I had a banker tell me about it. I am looking to cash out a hard money lender on a rental investment property purchase. The banker informed me that his bank is "true portfolio lender." Wasn't sure what that meant. What are the pros and cons that someone should be aware of with this type of loan program? Also, are there any portfolio lenders in the Boston, Ma region?

[Franklin Romine]

@Caleb Charles My experience with portfolio loans has been really good.  They typically have a shorter amortization, balloon payment, higher interest rate and bank wants a working relationship.  When I got my first few loans the bank made me transfer my accounts over to them.  It was a process but I was all in when they asked me too.  After I transferred my operating accounts to them they gave me a total of 8 loans they held in the bank.  

The biggest piece to the puzzle when you are in accumulation mode is recycling your capital.  The best and cheapest way is through portfolio lenders....

Frank R