Seeking Lending Partner for Expanding Portfolio

[Steve Cook]

Hi BP!

Happy New Year!

I'm an investor from San Francisco with a portfolio of investment properties in Indianapolis. Over the holidays I had some Family members express interest in the business and I'm now in the process of raising a Friends and Family round of capital to purchase 25-30 additional properties. I am targeting a capital raise of $625K in equity $1.875M in debt for a total raise of $2.5M at 75% LTV. I'm currently seeking a lending partner who can lend at a competitive rate with 25 - 30 year fixed terms.

To provide some additional background, I'm currently focused specifically on C+ and above assets in Indianapolis that generate 10%+ returns. I do not operate in war zones and all my properties are professionally managed by a PM with 300+ units under management. Across my PM's total portfolio, he sees ~5% vacancy. The DCR across my portfolio is 1.3. I have a assembled a very strong team in my inspector, Property manager, broker, and insurance provider. Finding a lender is the final piece of the puzzle.

Does anyone have any solid leads?

Happy investing,

Steve

[Steve Cook]

I wanted to provide an update to this thread.  I've connected with 30+ lenders over the past two weeks and have had the most success with Colony.  

Although the current plan is not ideal, it will get the business off the ground. The new plan would be to raise the $625K, and take out a $1.875M line of credit. Colony charges 9.975% for the amount of capital drawn. Assuming we're able to purchase 5 properties per month, completing the purchase of 30 properties in a 6 month period, that roughly equates to $55K in total interest. At that point, we would convert the portfolio over to a 75% LTV, 10/30 fixed term loan at 5.5% - 6.5%.

The minimum portfolio loan Colony offers is $500K, which also enables us to move over the properties in tranches.  In intervals of 8 properties, we could convert them to a term loan and reduce the line amount which will also reduce our overall loan exposure.