Local Banks - No Long Term Loans

[Jake S Mckinney]

Some context:

My primary strategy is small multi-family. My secondary strategy is that I'm starting a wholesale business to fuel some long-term SFR rentals. I'm looking to buy about 15-20 SFR in the next couple years.

What I’m looking for:

Revolving Line of Credit that can be easily rolled into long term perm mortgages.

What I’m getting offered:

.25-1% + prime for the RLOC

.25-1.5% + prime fixed for 5 years balloon or float - amoritized for 20 yrs

I’ve got great credit, assets for collateral, and I’m fairly liquid. I can’t find any local portfolio lenders willing to do a perm loan for longer than 5 yrs fixed. I’ve talked to 5 banks so far. I’m wondering if I should look at mortgage brokers or some larger national banks. Where is the long term debt?

Thanks.

[Jerry Padilla]

@Jake S Mckinney

Are you planning to put the properties in your personal name? Have you considered starting with conventional financing for the first 10 financed properties? Conventional will allow for fixed interest rates, 30 year terms and Multi-family investment properties are 25% down and SFR are 15-20% down.