Long Term Financing After 10 mortgages

[Luke Terry]

Hello,

Does anyone have recommendations for long term lenders after you're Fannie/Freedied out that service the Cleveland market?

I've purchased a handful of single family rentals over the last 4 months and I'd like to see how soon I can refinance from my bridge loan into long term debt.

My preferences are 30 years (20 years is okay), 75% LTV (80% ideal), min loan amount could be $50K (most of my properties have an ARV of $70K, although some are higher), preferably portfolio loans (I can bundle 5-15 properties into one loan), and requires less than 12 months of seasoning.

Corevest offers long term lending but has a $75K loan minimum which rules out most of my properties. Lending Home is also soon entering the Ohio market with long term lending options (if they haven't already) but have similar min loan requirements.

S&T Bank offers portfolio loans but require 12 months seasoning. I plan to work with them in the future but want to see what other options might work.

Thanks for any recommendations.

[Chris Mason]

Originally posted by @Luke Terry:

Thanks @Chris Mason.  This is the approach I've tried to take but it's been nothing but headaches.  The issue is that I'm growing fast (I bought 20 houses in 2019 and plan to increase that output in 2020).  My wife has been denied because she doesn't have income outside of this rental income and we aren't showing much rental income until our taxes come in this upcoming year.  I can pluck off a couple of loans through her this upcoming year but it's not going to meet the volume I need so I'm trying to find other options.

 I guess I don't really see people grow that fast in my rather expensive market. 20 a year is crazy to me.

In your shoes, I'd probably be walking into a commercial bank, perhaps calling a lawyer to talk business entity. Wrap them up in bulk commercial blanket mortgages, a dozen at a time. After they decide they like you, you might be one of those guys they just give very large lines of credit to, "here's a half million, stop talking to us on a per property basis, just buy them and we'll wrap them up a dozen at a time." People trying all this fancy stuff with 3 or 7 properties are wasting their time, I suspect you would not be.