Dwell Finance Experience?

[Rocky Daniels]

I've been looking at financing options. I own six rental condos, all free and clear. I'm ready to leverage some equity to grow my rental portfolio. Personal dti is on the high side for most conventional bank loans. Does anyone have any experience with Dwell? Other suggestions?

[Glen West]

Hi Rocky - I've been talking with Dwell about there loans on single properties.  I think B2R does the portfolio loans.  There are pros & cons.  The biggest cons I found were the high origination cost ($1499 regardless of loan size) and the early payment penalties if making extra principal payments in first 3-4 years.  The biggest pros were the 30 year loans and they don't care about your income - just the value & cash flow of the property.  Rates were 6.5% to 9% depending upon individual and loan.  I haven't pulled the trigger - looking for competitors to Dwell to compare against.

Ashley's idea about credit unions and HELOCs is a good one. I use two credit unions here in Huntsville, AL. One I use for lines of credit against rental properties and the other for commercial loans against rentals. Sometimes, I refinance from one credit union to the other depending upon rates. For example, got a LOC from one credit union on one rental and payed off commercial mortgage on a different property at the 2nd credit union to lower my overall interest expense and payments. Have also done the reverse, getting commercial mortgage to pay down a LOC. All loans to my LLC but guaranteed personally. In Alabama, credit unions only began offering business products for LLCs in the last few years, so in Michigan it may be different.....

Good luck and Go Blue!

Glen