All Forum Posts by: Rico Nasol

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@Jack B. it is definitely possible. Some portfolio lenders will just need to see a strong debt coverage ratio, strong credit score and enough equity in your portfolio. Refinancing usually won't be a problem since you already own the asset and it is secured. New purchases would be a little tighter since they'd like to see that your rental cashflow could cover the note since you won't have rental history on a new purchase.

@Troy Bailey I have used LimaOne, Finance of America and local banks in the areas we invest. Those are places you can start. DM me if you have other questions. I also have access to other options if those don't workout for you.

Agree with @Owen Dashner. We've done at least 10 refi's in the 6-8 month range and we've used LimaOne, Finance of America, local banks and credit unions. Ours were all cash deals, but they only looked for 6 months seasoning mainly to ensure rents were stable. Unless COVID has changed things, we did our latest refi in Dec of 2019 and it was around 7 months after our purchase.

@Brian Bistolfo you got some great advice here. let me know if you need help narrowing down lenders. we have some MHP lenders in our network that might be able to help. 

Cash out refinance would be a good options considering you could invest the whatever funds you didn't use in the rehab. Would be good to use that money to make more money for you in the long run.

Finance of America is another good one. If they don't have terms you like and LimaOne doesn't either, DM me. I may be able to help with better terms and rates.

It depends on how long you'd like to hold them and if you need the flexibility to sell them off one at a time. A blanket loan can make it simple and roll all of your properties into one loan. You'll have one payment and it would be much easier to manage. That being said, if you wanted to sell 1 underperforming asset or 1031 exchange or anything like that, you'd have to refi that property out. My partner and I refinance each property individually (unless they are on the same parcel) so we have the flexibility to sell or exchange as needed. You may also find that the ARV might be higher individually. It's time consuming to refi all individually, but that's what I prefer. There may be more benefits to the blanket loan option, but I haven't gone that path. @Elise Marquette

@Everett Baker great problem to have since you've built up your rentals. You'll have to now move on to portfolio lenders. These are lenders that carry the loans themselves so they aren't backed by Fannie or Freddie. You can technically have as many of these as your business can handle. As long as the debt coverage ratio is around 1.1-1.25, you should have no problem finding these lenders. The only thing to watch out for are their rates. Rates with these types of lenders start at around 5%. Since they carry the loan, they don't go off the prime rate usually. For me and my partner, we take the higher rates into account when we analyze the deal. You should check out credit unions or savings & loans in the market you invest in. It's easier if you invest where you live. If you are an out of state investor, some of those banks where you invest don't always welcome out of state folks. There are some national portfolio lenders like LimaOne and Finance of America. Their rates aren't bad, but they don't always have the best service. I also have access to some portfolio lenders if you are interested.

You could apply for an SBA loan. If you haven't done that before, there's quite a bit of paperwork needed to get those approved since they are government backed loans. I can help you put together a package if that's the route you want to go. If there is equity in your rental, it might be possible to refinance that can help you cover the $29k property. You'll only need about $13k down for the other property and maybe $2000 for closing. 

Do you have ~$25k in equity in your rental? That's all you'll really need to get this deal done. If you don't have access to that, I know you don't want to use hard money, but there are 10% down options that can get the deal done.

My first play would be trying to use any equity I may have. 2nd play would be the SBA approach. Last resort would be hard money.