how to financial multiple property packages using conventional

[Samantha Soto]

Hi everyone,

I'm looking at an 8 property package in Indianapolis.  I would like to utilize conventional financing, putting 25% down.  I was wondering if I could get one loan for the entire 8 prop package, or would I need 8 separate loans?  Anyone have any good lender recs in the Indianapolis area?  I am looking for someone who goes above and beyond to close a deal quickly.  Thanks!

[Shawn Ackerman]

Hi Samantha Soto this is certainly possible however can take upwards of 4 months to complete.

First off- the property contracts must be individualized

Second- they will ALL- need to be appraised. My conventional lender charged $600 per property.
***if there are issues in the appraisal( life safety/condition) you will need to negotiate with seller on who picks up that tab. Outline it in the contract. PLEASE.

Third- you can get all the way to the end, then have the deal go south. I had a 5 SFR deal that fell apart on me(lender side)

Fourth- You cannot apply for any new credit during this period.

Fifth- make sure that adding 8 properties to your credit profile will keep you under 43%DTI

Sixth- make sure you have reserves x 6 months per property(liquid or non-liquid) depending on your lender.

Seventh- Min credit score of 660 or higher. After the lender finishes running your credit you will see a drop in score from all of the inquiries.

Couple more things to mention but this is the core items to have in mind.

Pm me if you want to talk further and I can share my conventional lender war stories with you.

Best of luck!!!!