Creative Financing for portfolio of rental properties

[Tayvion Payton]

Hi everyone,

I’m new here and recently connected with someone looking to retire and sell his portfolio of 19 properties (a mix of multi-family and single-family homes). I’m very interested, but I still need to analyze the deal further. My main question is around financing – how do you typically secure funding for a portfolio like this? Has anyone had experience buying property portfolios? I’d love to hear how you approached your analysis and secured financing.

Thanks!

[Jackson Ebersole]

Hi Tayvion,

Let me share a few tips on how to approach the financing:

Look into portfolio loans or blanket mortgages. These allow you to finance multiple properties under one loan, which can be way more efficient than getting individual loans for each one. Just keep in mind that portfolio lenders will want to see the overall cash flow and occupancy rates across the whole portfolio.

Get ready with a detailed financial analysis. Lenders are gonna want to see profit and loss statements, rent rolls, property condition assessments, the whole nine yards. Show them the portfolio's profitability, occupancy rates, and growth potential.

Consider a bridge loan if you need to close quickly. These short-term loans can provide interim financing until you lock in permanent financing. They're more focused on the property values than your personal finances.

Explore crowdfunding platforms as an alternative to traditional bank financing. Especially if you're a first-time portfolio buyer, these online platforms can help you raise capital from multiple investors.

Work with an experienced commercial real estate broker. They can guide you through the process and hook you up with reliable lenders who've done this before.

The key is having a solid grasp of the portfolio's financials, a clear plan for the properties, and a team of pros to help you navigate the financing side. With the right approach, you can definitely secure the funding to scoop up this portfolio and grow your real estate investing biz. 

Let me know if you have any other questions and if you need to talk about funding options with a private lender! Happy to share more insights.

Jackson