Private Lenders in New Jersey

[Richard S.]

Hello, 

I currently have a portfolio of 7 properties (mixed SFHs, duplex, triplex, quad), owned free and clear, each held by separate LLCs (formed Jan 2016).  The problem I am running into is that most of the traditional banks will not accept rental income from these properties until I have 2 full years of tax returns for them. As an aside, my previous employer switched me from salary to K1 when I became Partner, and the banks also require the 2 most recent years of pay stubs be W2 or K1, but won't accept a combination of both. So this leaves me in a weird situation where there is income coming in, but traditional banks won't accept it. Therefore I'm left seeking a private money lender, preferably located in South Jersey where I do my investing. 

Does anyone have any recommendations (especially, experience) with private money lenders in New Jersey and can refer me to some who have reasonable rates? I'm looking for lenders who will do minimum 10 year mortgages, as I am a buy-and-hold investor and don't want to have to plan to refinance through a traditional bank a couple years in. 

Any referrals would be appreciated. If you are a private money lender, located in South Jersey, I'd appreciate if you have references.  

[Adam Anderson]

Sounds like you might simply be speaking with the wrong banks. I've have much better luck with the smaller banks that have a portfolio loan they hold. Try Boiling Springs, First Hope Bank, Investors Bank, and Lakeland Bank. You may need to use a commercial loan take may adjust after 5-7 years but they should be able to put more weight on the property's financials and accept your income.

Adam