Mortgage for a brand new LLC with significant downpayment ?

Question

Hello,

I was looking at few properties in Detroit with very good cash flows. While I have most of the money, I am still curious if it is possible to get mortgage against entire portfolio since they are 30-40k houses. I am NOT a US citizen but have excellent Canadian Credit and can get GC if it helps. Total amount is 200k.

Ideally I would be looking for a mortgage at 20% downpayment, but even if I have to go till 40%, that will still be a good deal. Secondly, what are the usual terms of mortgage ( Rate & length?)

In addition, if mortgage is not a possibility, is it possible to pay full in cash & then refinance the portfolio immediately ?

Chris L. · Answer

Hello Haseeb,

Yes there are portfolio products available for such properties. Lenders have a lot of different underwriting guidelines so would need to know more about the details of the portfolio to really answer your question. Feel free to private message me if you would like.

Rate & Terms would be after a full underwriting. This type of blanket loan is a commercial loan which means rates and terms are issued on a risk adjusted basis after underwriting the properties. Commercial rates are usually a little bit higher then residential rates but you sound credit worthy so I don't think you would have to worry about subprime rates.

Yes there are programs that allow you to cash out refi with only 30 days seasoning and if you are a business owner there are also business financing tools you can utilize to buy these low priced houses and pay them off within six months or so. Again if you would like further clarification please feel free to connect.

Cheers!