Portfolio Lenders in San Antonio TX

[Pedro Padierna]

Hi,

I have four properties in the San Antonio area, and I would like to buy a 5th using my portfolio as collateral. Any recommendations for portfolio lenders in the area?

Thank you...

[Andrew Postell]

@Pedro Padierna ah, these are good answers and this allows me to give a little more specific advice here.

If you own these properties free and clear I might recommend a "Line of Credit" for you. A Line of Credit (LOC) acts very similarly as a HELOC, as in its like a giant credit card for you to use when you need it. You can use it, pay it back, use it again, over and over. And if you don't find a home for several months.....then you aren't paying interest on it...just like a credit card. The closing costs are lower on receiving a LOC as well.

A LOC can be placed on one home or several and is also based on the equity of the property. If you need $100,000 to buy a home, you would just take a "draw" on the Line and then pay for it with the cash you received from it. It's super easy to use and I think that might be the right product for you.

One thing here: A Line of Credit is NOT designed to be a PERMANENT loan. What I mean here is that the LOC will have a variable rate. So the rate will adjust from time to time. And after a period of 10 or 15 years, it will "modify" into something else and the rate will be higher again. These are all normal attributes to a LOC. So when we, as investors, use LOC we just need a plan to pay them back. So if you are buying a house to flip....well, that's easy. When you sell the property, you then pay it back. If you are buying houses to KEEP...then you would want to refinance that newly acquired home to pay back the LOC.

The LOC allows you to act like you are a cash buyer and since you can reuse it over and over it helps you be flexible and keep your costs low too. I hope all of this makes sense but feel free to ask anything additional if you need. Thanks!