Private Lenders for long term financing

[Sam Mathew]

Private Lender

Hello, I am hearing 100 times how I can use a private lender or hard money to buy rental properties and then later refinance with a bank.  But I already have 10 conventional loans which is the max limit for conventional loans.  So if that's the case, how do investors get long-term mortgages to finance their rental properties.  I'm sure I can finance with hard money or private lenders for a short period but how do you scale to own 50+ rental properties with long term lending?  Please let me know if you can.  Thanks.

[Andrew Postell]

@Sam Mathew you just need a "portfolio" loan. I'll define these loans as loans that come from the bank's own "portfolio" of money. Sometimes referred to as "commercial" loans. These loans are a lot more flexible than "conventional" loans. Bank's money = Bank's rules. If they like you, then maybe they will lend to you. But since there is a limit to how much money the bank has access to....their rate will be higher...and usually a shorter term. The most common portfolio style loan in Texas is a 20 year adjustable rate loan. These loans are easier to get but the terms are different.  You don't have to go through private money.  Plenty of portfolio/commercial lending options out there.