Portfolio Loan Questions

[Peyton LaBarbera]

I have been looking into portfolio loans and I have a few questions that need clarifying

First off when you get a portfolio loan can you add additional properties after creating the original loan as in the future I am looking to keep expanding my portfolio?  If so does this affect the current rate I have?

Once a property is paid off in this style of loan can I individually sell that property or do I have to sell the entire portfolio?

Does a portfolio loan work with multi family homes of 2-4 units?

Lastly If I want to switch my current properties held in my LLC into a portfolio loan is that just a matter of switching things around or do I have to refinance all of my properties?

Thank You,

Peyton LaBarbera

[Chris Seveney]

Quote from @Peyton LaBarbera:

I have been looking into portfolio loans and I have a few questions that need clarifying

First off when you get a portfolio loan can you add additional properties after creating the original loan as in the future I am looking to keep expanding my portfolio?  If so does this affect the current rate I have?

Once a property is paid off in this style of loan can I individually sell that property or do I have to sell the entire portfolio?

Does a portfolio loan work with multi family homes of 2-4 units?

Lastly If I want to switch my current properties held in my LLC into a portfolio loan is that just a matter of switching things around or do I have to refinance all of my properties?

Thank You,

Peyton LaBarbera

 1. Depends on the lender you are using. Some lenders will increase the loan if you add properties, but just remember if you remove a property typically it will require 125-150 reduction in loan balance. So if you had a $100k loan on a property, they would require $125k-$150k paid down to protect them so the last asset does not have a lower value than what is owed.

2. Yes they work with MF / 2-4 units

3. Lenders typically want properties owned by one person/entity. 

hope this helps