How to get Portfolio loans or Line of Credit

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How to get Portfolio loans or Line of Credit

Mak J.
Member since 2018 · 234 posts · 44 votes

Hi,

So I have 3 properties under 3 different LLC. I would like to get a loan or line of credit on the portfolio. The way I want is to get a Line of credit such that it is authorized, and I only pay interest when I withdraw from it. What is this type of loan called and who does it? I called Chase and other banks and they said we can give you 80% of the equity but you pay interest from day 1 if you use it or not?

I want something like an overdraft where I can use the loan cash for buying other properties. I am ok with little high interest rates. What is the exact term and what type of lender does such loans?

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Mak J.:

    Hi,

    So I have 3 properties under 3 different LLC. I would like to get a loan or line of credit on the portfolio. The way I want is to get a Line of credit such that it is authorized, and I only pay interest when I withdraw from it. What is this type of loan called and who does it? I called Chase and other banks and they said we can give you 80% of the equity but you pay interest from day 1 if you use it or not?

    I want something like an overdraft where I can use the loan cash for buying other properties. I am ok with little high interest rates. What is the exact term and what type of lender does such loans?


    This will be trying to find the needle in the haystack.

    If you had them under one LLC you may have had a better chance but lenders today are very reluctant to cross collateralize multiple LLC's. Getting a line of credit on one property or LLC is challenging. Your best bet may be a private lender but if its in second position those are going to be extremely expensive. Due to cost of capital and liquidity, If you can get below 12% that is winning.

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  • Scott WolfPro Member
    Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 959 votes
    2y
    Quote from @Mak J.:

    Hi,

    So I have 3 properties under 3 different LLC. I would like to get a loan or line of credit on the portfolio. The way I want is to get a Line of credit such that it is authorized, and I only pay interest when I withdraw from it. What is this type of loan called and who does it? I called Chase and other banks and they said we can give you 80% of the equity but you pay interest from day 1 if you use it or not?

    I want something like an overdraft where I can use the loan cash for buying other properties. I am ok with little high interest rates. What is the exact term and what type of lender does such loans?


     Hi Mak, shoot me a PM. I have a firm that may be able to help you out.

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  • Account Closed
    Rental Property Investor · Temecula, CA · Member since 2022 · 12 posts · 3 votes
    2y

    Hi Scott - I’m looking for this as well. If you found a solution please let me know as well. 

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  • Mak J.
    OP
    Member since 2018 · 234 posts · 44 votes
    2y

    Update and sharing what I learnt so far:-

    I went to a local credit union and they said they give line of credit based on 80% equity. Also rates are prime plus 2.5. So as of this date you are looking at 8.5ish. Loan involves a fresh appraisal and origination fees etc. 

    Another suggestion banker made was it’s easier to get a loan on a stock portfolio. It cost less, there is no Leon, and rates are prime minus 0.5 meaning as of today it is 8%. the benefit is it did not require Lein, home insurance, etc etc making it cheaper to acquire 

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  • Account Closed
    Rental Property Investor · Temecula, CA · Member since 2022 · 12 posts · 3 votes
    2y

    Thanks!

    0Reply
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