Finance multiple properties

[Eric L.]

Looking for ideas to finance multiple properties. I know a few companies have blanket loans, also maybe a local bank that might support portfolio lending.

Properties are in Columbus, GA. I already own 3 cash producing properties there. 2 have financing, the other paid off.

My plan is to buy more rentals, but am looking for the best financing option.

[Jonathan Taylor Smith]

@Eric L. - My first 3 properties were financed with a conventional lender in my personal name along with my wife. Then I started using LLC's and moved to using lease-options and private lender funds to acquire additional properties, which I would refi into 30 year loans after 12 months of ownership (seasoning). I've found a few national lenders who gladly lend up to 75% LTV to my LLC on these single-family and small multi-family properties.

I've kept it to one loan per property instead of using any sort of blanket loan, as I do not want to make selling an individual property more difficult should the desire or need to sell arise. The interest rates are a bit higher than when I was operating under my personal name, but its much safer and the properties still cash-flow well.

At this point, if I had a fully paid off property, I'd just re-leverage it and use that money to buy more. I honestly do not want any paid off properties at this point, because I see that as dead money that is doing NOTHING for me. Calculate the return you are getting on the equity in that property and determine if you could greatly improve on that return through the arbitrage between what you'd pay in interest pulling out 75% of that amount and using it as 20% down to buy another property or two. In so doing, you'd also increase your tax benefits, plus spread your risk across additional properties. If done right, you can also increase your overall cash-flow, as you'd then have more rentals.