Best way to refinance 12 units made up of separate properties

[Haresh Melwani]

Hi BP Family,

What is the best way to refinance 12 units made of 3 duplexes and 2 triplexes that are in 1 city but not near each other? All are currently owned in a single LLC. Would such a portfolio be valued using individual appraisals or NOI and cap rate?

[Shawn Ackerman]

@Haresh Melwani these will be valuated by individual appraisals if you are  intend to work with a conventional lender.  Honestly that's where the cheapest money is with the best terms (30 yr fixed).  However if you have a portfolio lender in your market who can size up the portfolio and do a blanket loan on the portfolio that may make sense.  However I've spoken to lenders that would like the individuals doors to be worth a min of $50K each.  If you don't have alot of mortgages in your personal name I'd suggest QC into your person and put some conventional financing on them.  You will have to pay separate appraisals and lender fees for each ball park $2400 - $3200 depending on the lender.  All the best to you.