Financing strategy: conventional or portfolio

[Joseph Weisenbloom]

Guys I just closed on my 4th conventional loan. I understand I can get conventional financing up to 10 loans. I have also been offered portfolio lending which appeals to me because the lack of seasoning period. My plan is to do a blanket loan once I hit 10 loans and refi to tap some of my saved equity.

My question is should I just start using portfolio lending now instead of conventional? I figure it could be more expensive with closing costs to do 10 separate conventional loans and then a refi for a blanket loan. What are your thoughts on my financing strategy? Whats a smart way to scale quickly?

[Michael L.]

Depends on what you are looking to do and what a bank or portfolio lender offers. One advantage to many of the portfolio lenders is they offer non-recourse loans. Also, the way banks look at DTI versus portfolio lenders is different.