Portfolio Loans for investors with more than 4 fannie properties

[Nate Dallin]

I, like of few of the other posters I have read, am running into the 4 loan limit. I currently have 7 loans and my wife has 4 loans. I have read quite a few posts about how you can get a portfolio commercial loan to either combine all or some of the conventional loans or purchase new ones. I have spoken with a few different lenders and banks locally and they have all said you can’t buy or finance single family residential real estate with a commercial loan. It sounds like it is possible based on what I have read from this site, but it is a matter of finding the right lender and developing a relationship with them.

With that being said, I would appreciate feedback on the process of obtaining a portfolio commercial loan so I am more educated as I approach the banks. Does the loan need to go to an LLC or can it go to an individual as sole propriator. What levels are the lenders looking for: loan to value ratio, cash flow, credit score, etc. What kind of statements do you need to present â€" tax returns or more detailed pro forma statements. What kind of terms can you expect to get for a loan? Do you combine multiple properties into one loan and if so what do you do when you sell one of the properties? Do you pay for appraisals and title insurance for each property like you would in a traditional refinance or purchase? I am sure I am missing a lot of other pertinent questions so if you have any more info please respond. Also if you have any other suggestions let me know. I feel like I am stuck because I can’t buy any more properties (except for seller or creative financing) and can not refinance any of my existing properties because of the 4 loan limit.