Anyway to finance multiple properties at a time?

Question

I have a normal average job, and currently have 2 rentals that cash flow well. I would like to accumulate 10 rentals in the Indiana area. Doing this the conventional way could take a long time to achieve my goals. Is there any lenders or options out there, to say get a loan for 4 properties at a time or something similar?

Just wondering if anyone has been in a similar situation.

Thanks!

Just wondering if anyone has been in a similar situation.

Thanks!

Shawn Holsapple · Answer

@Gabe Gordon I have had some success with purchasing the asset first with cash [private lender, LOC, etc] as Frank Romine mentioned and then refi once I have control and have clean up the property so it will appriase more.  Most local small State Banks and Credit Unions will do this.  This gives you an opportunity to refi or pull out the equity instead of just covering the purchase price minus the 25% down payment.

Most banks will give you a non-secure LOC when you have a W2 job.  I know [back when I had a J.O.B.] PNC started me off at $10k & I've know worked that up to the max of $25k by using it once every few weeks and then putting it back in to build a history.  Then after about 6 months ask for more.  Rinse, repeat.  You can also just get a LOC on the paid off property but I've found this to be harder than just doing the refi.

Once you own 4 or more like this, you can then approach a lender for a "blanket" commercial loan to pay off all the assets and put them under one loan.

Steve Endress · Answer

@Gabe Gordon

Hi there.  You can close four fannie loans at the same time.  If you have purchase contracts signed, an investor-friendly mortgage banker will help you close all four at the same time.  I have done this several times.

Anthony Vandyke · Answer

Hello Gabe

I just originated a portfolio blanket loan for 23 residential properties in Idaho.

I can help you with this but our guidelines are a minimum loan amount of $1,000,000 and a minimum of 5 properties. We are typically 70-75% LTV and 20-30 year amortization.

Adam Gerig · Answer

Yup I'd look at Portfolio Loans I know that there are a couple banks here locally that will take a look at things and loan on them.  The only thing with portfolio loans is that they are all lumped in to one loan know so it makes selling one individually a little more difficult.  Although if you have an established relationship with a bank and have wording put in up front that X property is this percentage of the loan then you shouldn't have too hard a time if you'd ever want to sell one.

Franklin Romine · Answer

Regional bank.  It was a commercial line of credit.  I don't think they have a limit.  It is all about capacity, assets, liabilities, relationships, presentation/plan, cashflow and sometimes how the underwritter woke up.  I had an existing relationship with the bank.  At the time with them I had 4 portfolio loans and some cash sitting in an account.  I wasn't running my primary business transactions though them or my day job income.

Gabe G. · Answer

Did you get this from a major bank, or local credit union?

Most banks here, will do unsecure lines only up to 10k

Obviously I have credit cards, where I could take low apr cash advanced, but they have upfront fees to do so.

What I would like is to find a local bank, that would do a unsecured line of about 50k, to supply funding, then I can refinance a few months later., would also allow me to move quicker. Just don't know where to start to find that kind of financing.

Franklin Romine · Answer

That example was a unsecured line of credit.  They probably looked at my capacity at the time.

Gabe G. · Answer

Is the line of credit based on equity in other rental properties, or a commercial/personal line of credit you have with a bank?

Thank you,

Franklin Romine · Answer

Maybe. But, you would probably be better off requesting a line of credit to purchase the properties and then refinancing once you control them.  That line of credit would make your life much easier buying.  If you are buying prolems it will probably be almost impossible to find a lender that will loan on the purchase or it will be 50% down or they might require cash in a escrow account for repairs.  Here is an example from one of my deals...  $40K line of credit.  With my cash and line of credit I bought a $47K house, needed $8k in repairs, total cost $55K.  Rented and refinanced 3 months later for a $45K loan.  Paid the line off and got back some of my own money.

Anyway to finance multiple properties at a time?

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