Creative Portfolio Lending Question - Columbus, OH

[Joshua Myers]

Hello,

I'm looking for a way to creatively access some equity in my portfolio to expand here in Columbus ,OH. I currently have 6 LTRs worth a bit over $2mn, with around 700k in equity, cash flow of 4-5k/month and my average CoC is 4.37%. I've had offers to refinance the entire portfolio under a portfolio loan, or to use a commercial loan with a local credit union. A portfolio loan takes my rate up quite a bit and kills my cash flow, and the commercial loan option has a 5 year balloon payment. Both of these options are hard to swallow right now, especially after I played my cards right and locked in crazy low rates when they were at the bottom.

Has anyone had success finding an alternative route to financing and expansion? Any help would be greatly appreciated.

Thanks!

[Matthew Crivelli]

@Joshua Myers

Unfortunately the cost of capital has gone up and I don't think we are going to see rates coming down anytime soon. 

Lots of investors are now asking themselves what's more important, cash-flow or purchasing more assets?  The most important has almost always been asset appreciation and cashflow was a bonus. In times of ultra low rates things seemed to flip flop and people started preaching about cashflow. 

I personally think that there is no secretly cheap money out there right now and If you want to access your equity without selling the properties you will end up having to refi into a higher rate.