All Forum Posts by: Account Closed

There are commercial lenders who can do 30-year fixed rate rental loan on 5-6 SFH portfolio. Interest rate is about 1-1.5% higher than residential loan.

You can try a conventional loan first just like you buy your second house as an investment. If you still qualify (with the credit score, DTI, etc), this would be a better option for you because of the lower rate. If you can't qualify, commercial loan would be a good option for you. Usually commercial loan requires at least 3 months seasoning for the fix and flip project. At current market level, interest rate is about 5%. And there is no rate lock thing in the commercial loan world, that is why the commercial loan does not give you any hard number. In addition, they need the house to be rent-ready to work on a long-term rental loan. Hope this helps.

@Corey Key You definitely can do cash-out refi on multiple properties. Commercial blanket loan or portfolio loan is what it for. To sell or cash-out refi, always a question. What I view this question is, after I do cash-out refi, does my cow still produce a decent amount of milk? Cash-out refi increases the loan amount, and so maybe the monthly payment. If the milk is still coming and can keep in the next couple of years, I would definitely keep it. If the milk is minimal and I found a better deal somewhere else, sell and switch to a different cow sounds a little better.

@Dr. Jordan E Smith Yes, if your own business occupancies the property, SBA is a very good option.

There are commercial lenders do longer term, just need to look at your situation overall, like the collateral type, value of the complex building, how strong the cash flow is, credit score, etc.

@Adrie Moses-bailey I haven’t worked with them. If I get a property, I will. We met in a local meetup and had a couple of conversations. I feel they are reliable and professional. That’s why I recommended them.

@Gary L. Henderson construction loan can be as low as 10% down. And if you own the land free and clear, the land is a form of down payment. 

There are some lenders can do 30-year fixed for small multifamily. Local bank or credit union can give you low rate, but they typically offer 25-year amortization with 5th year balloon payment.

Loans close to LLC for single family home investing can be up to 80% LTV for purchase and up to 75% LTV for cash-out refinance. New LLC has no problem.

@Michael Williams I believe what you meant is private money lenders. Hard money loans are not for down payment. Hard money is to finance the whole project when people is hard to qualify borrowing money from regular banks. Private money loans are based on the deal and personal relationship which can be used for down payment.