Switching to portfolio loans

[Ryan Keenan]

Hi BP, was wondering how many people make the switch and not use all there 10 conventional loans and go straight to portfolio? I have 3 properties all in conventional but the process is slow and would like to go faster. I know investors say you can buy with a LLC and refinance earlier but seems like alot of moving parts. The other is the delayed financing but after calling a ton of banks, no lenders know or can put the rehab costs into the loan. It bothers me leaving conventional options on the table but I want financial freedom so bad! Thanks for the advice! Ryan

[Stephanie P.]

Originally posted by @Ryan Keenan:

Hi BP, was wondering how many people make the switch and not use all there 10 conventional loans and go straight to portfolio? I have 3 properties all in conventional but the process is slow and would like to go faster. I know investors say you can buy with a LLC and refinance earlier but seems like alot of moving parts. The other is the delayed financing but after calling a ton of banks, no lenders know or can put the rehab costs into the loan. It bothers me leaving conventional options on the table but I want financial freedom so bad! Thanks for the advice! Ryan

 Hey Ryan

Because of the cost of portfolio loans, we always encourage borrowers to exhaust their conventional options first, all the way to the max of 10 loans per individual and 20 per couple.  Lots of times that's just not possible for myriad reasons, but that's our baseline; and as a point of reference and not solicitation, all we do is portfolio loans.  

Cash flow is key and profit is the objective and to have more expensive financing in place before you need to is leaving money on the table.

Stephanie