What should I know about Portfolio or Blanket loan funding an LLC?

[Mike Carino]

Hello

I currently hold 4 properties outright in an LLC partnership that I formed last year with another investor. The properties are all rented and are showing income this year. I will acquire another 6 properties to the LLC by utilizing our own personal funds to acquire these properties through foreclosure auctions. My situation is we need to leverage our personal income to get the homes, but will run short on funding to rehab all the properties quickly without outside capital.

I am looking for more information of portfolio loan or blanket loan, I have been reading about here on the forums. I would use the money and fund for rehab of properties, and possibly recoupe some of the personal funds back to fund other projects.

My question is when seeking out this type of lending, what do they look for, and some restrictions that I should be aware of to be better prepared

What are some of the typical protocols banks look into when evaluating this type of loan funding an LLC?

-Do they look strictly into evaluation of the properties as a whole?

-Am I better showing 10 homes in my portfolio, instead of only 4 homes?

-Do they look and see how long you have been in business, and how long I have owned the properties?

-Personal income/credit of partners in the LLC come in place?

-Does this seem to be a strategy many investors do?

Yes I am aware of private lending, hard money lenders etc. But I am not interested in knowing anymore information about those avenues of financing.

Thank you all in advance

[Rod F.]

Mike,

Here the first question that was asked of me was do you have rentals. my answer was yes we have had one for 2 years. he said great you know what your doing. This was years ago.

Since then we have bought over 40 sfh's , all but a few have been foreclosures.  We finance purchase  and rehab on almost everyone. trick has been in the buy . only buy deals. we provide most of our sweat equity.  The lender's have shown us many ways to make things work .  leverage of existing equity's, always looks good.  We have never went back and borrowed the extra equity's of the rehabbed homes but I am sure it would work. We just  reinvest , reinvest.

We both have personal jobs so they like the fact were not living off of our investments.  We have to sign personal guarantees.  I'm working on building business credit now.

With all that said. we are trying to combine 40 loans into 4, reduce the amount of payments and hopefully free up a few property's that are close to payoff. (son just did this with his properties.)

The loan officer is working on this now. I hear looking at the equities we have in the properties things are looking pretty good. We have asked him for ideas on what we need to do.

one paid off house will provide equity's needed for rehabbing of another. I just learned Home depot has a project loan program also. we might start looking at that in the future. I have just started paying cash for houses under another LLC personally not in partnership. This particular rehab is going to be close on funds. my thought is a heloc with the two paid off houses. and this will provide me with the funds I need to do either another purchase or to finish rehab.

The one thing I have learned is they will tell you what they need, And if they say NO. there is another bank around the corner that wants his customer.