Portfolio lenders and loans

[Patrick Jung]

What are your experiences with a portfolio lender/loan? Have you used for a distressed property? Cost of loan and ability to refi after renovations? Thanks

[Tom S.]

@Patrick Jung Excellent experiences with my local portfolio lenders (local banks). I've only used them for distressed property, and terms are commercial (regardless if SFR, duplex, 5 unit). No points, 5 year fixed and then fluctuating, 20 year term. Most were originated around 4-5% range 5-10 years ago and in the 6.5-7% range now. The big banks (Chase, BofA) wouldn't touch these properties.

I've never refinanced them after the rehab.  I rent them out, have the tenants deposit the rent into my bank account at these banks, and then the next loan is even easier as they have the rental income right in front of them.  Full doc (W2, tax returns) and good credit were always required.

Good luck,

- Tom