Mortgages for Buy and Holds

[Michael Rothenberg]

Hi all,

One of the things we do is rehab and hold/rent single family and multi family dwellings. We are seeking a funder/bank who does mortgages on these properties, as an exit to the hard money lenders. If you have used any of these services, or can recommend one, please contact me. 

Thanks so much!

Michael

[Ben Leybovich]

If you are doing several of these acquisition per year, in which case this would be considered your primary business model, I think you need to look for a portfolio lender. These are commercial bankers. Most of the time the amortization is 20 years or less. And the interest rate is higher a bit, but not much. 

But, these guys don't sell paper on the secondary market to Fannie/Freddie. They actually keep it on their books for CF - this is how they drive ROI for their investors.

Look at local banks with 3-5 locations in a few towns in the area.