"Portfolio" loans are 10 conventional loans
Hi,
I'm trying to get a handle on what my options are once I reach 10 financed properties. At that point it's into the commercial lending business; is every loan there on out 30% down, 5 yr adjusting rate? There must be other options, of which I don't know - any insight to the lending environment after 10 loans would be really helpful, thanks!
To tie into that, I hear the term "portfolio" loan as if its a cure-all loan type.
Thanks
Jon
Your "portfolio" loans are your best option after 10 financed properties. The term means that it is a specific lending program or fund not sold off to or under fannie/freddie or government loan guidelines. So you're not restricted to the rules governing most loans.
That means it's more expensive and requires more downpayment, but you get the flexibility to buy as much as you can justify in your balance sheet and application. You are typically going to get 6% to 8% rates and require a 25% downpayment.
Most investors who reach that point go to MFH or syndications.
@Robert Sepulveda Thank you for the explanation!
@Lane Kawaoka Lane, thank you for the reply - could you explain syndications?