Creative Portfolio Funding Question

[Jamie O'Connell]

I am trying to plan ahead with what I can do with my existing portfolio in the next 3 - 4 months. 

In the LLC that I would be looking to do a portfolio loan (or something) I have 2 current multi unit properties and will have another 3 multi families in it by March 2024.

The two current multi families I bought last year are worth about 25k more than I bought (and already had 25% equity when purchased due to loan requirements) and I went in and raised rental income in each by about 40% by getting section 8 tenants. 

The three im under contract for I got for great prices and using hard money loans that will pay for property (minus 15%) and will cover the cost of rehab. I plan on continuing (and already have 40% rented out) to do section 8 tenants for raised rent. 

If the market stays where its at and we stay on budget for the remodel each of these three properties will probably have $40-$50k worth of equity.

So in theory by May 2024 I should have about $250,000 in equity and all 5 properties (14 doors). 1 loan in my personal name I want to transfer into my LLC, one with a regular investor loan and three with loans that I will have to refinance by March 2025 anyways.

So after all of that, I would like to see what options are available for me to use about 70% - 80% of the equity to buy more properties.

Is this a portfolio loan? Using properties as collateral for a LOC? I am very open to any and all ideas and conversations as to my available options.

I have 5 - 6 months before I need to really pull the trigger but I am happy that im at a point where I can start using things other than my savings account for buying properties.

Thank you for any help! I know that was a lot. 

[Zach Lemaster]

There are many different loan options that could assist you in this scenario.  I personally recommend checking with local credit unions along with Greg Ernst at North American Financial.  They have done many creative portfolio loans for us that have a diversity of terms.  Best of luck!