Financing Rentals

[Todd P.]

For those who are in the 5-10 SFR and are buying more, how do you finance them? I have done the hard money, rehab, ref into conventional loan for one rental. The last 3 I did were VA vendee financing (when that was available). Since, I have been flipping but want to get back into more single family rentals. My question is for those out there that buy SFR rentals; how do you finance them? I'm looking into a toward local bank that requires 20% down with a max term of 15 yrs. When I got into this game a few years ago I wanted to get as many properties under control with as little money down as possible, but am now considering another side of things. I would love to hear how people with multiple SFR finance their deals either by choice or by what the current financial environment forces you to do. Thanks in advance.

[Ernie Woodhouse]

I am talking to B2R.  They are associated with the Blackstone Group and basically, as I understand it, offering long-term financing at almost 1/2 of hard money rates.

I proposed putting 3 of my rentals together to get over their $300,000 minimum loan amount. With a LTV <50% and good credit, etc. - the quoted 5 or 10 year fixed, amortized over 30 years at around 6%.

I'm now considering all 11 of my rentals with loans which'll take me over the $1M loan amount and get a better rate.  Should know in a day or 2.