Refi portfolio loan?

[Jason Skelton]

Purchased 3 SFR at $29K per with cash ($87K total). I don't qualify for delayed financing so leaning toward portfolio loan for all 3. Unfortunately portfolio loan is variable APR. Can I refi this loan with conventional mortgages on each property after 6 month ownership period runs? Related question: anyone getting fixed APR on portfolio loans?

Thank you!

[Dorothy Butala]

Are the SFR's in your name or a business name? I am not sure what you mean when you refer to "delayed financing", could you explain for my benefit? When you say portfolio loan, do you mean working with a bank who does not sell their loans, but hold them in house?

Some banks have different requirements, but two that I work with structure loans as follows:

Bank 1:  is a local portfolio lender, requires a 6 month season period, does 15-20 year notes with 5 year variable interest, super quick turn around on refinances

Bank 2: is a credit union that does commercial loans, doesn't require a seasoning period, but does require a lease to be in place, does 15-30 year notes, rates vary depending on note term, and they will allow a 10 year period before the rate changes, super slow turn around on refinances

I opt for option 1 because I don't like to be slowed down for 3-4 months waiting for a refi, but I also have a great relationship with my bank, and tell them what other lenders are doing and see how closely they can match the competition.  For instance, my bank is considering giving me a 10 year locked period, and when they usually only do 15 year terms, they have been giving me 20 year terms.  

The reason I bring this up, is because I don't know what relationship you have with lenders or your investment background and history.  If you are new, you may be held to their standard loans i.e. 15 year term 5 year apr with a seasoning period, but if you are more of a seasoned investor and show a history, they may be more likely to be lenient with their terms.  The commercial/portfolio you have a bit of negotiating room, unlike the retail/residential side.  

I hope this helps a bit!