I have some buy and hold rentals which are financed through banks with 20% down payment . And a big loan on primary residence.
Now I want to purchase a bigger rental but not through private lending as the rates are very high.
Last time I checked with my existing bank financing other rentals said they can't finance more as I already have few loans on existing. How can I get it financed and what are options and conditions to purchase my next rentals ?
Any guidance much appreciated
@Shawn B. Some local banks have loan limits to individual borrowers. My best advice is to reach out to other local banks and see if they'll give you financing. If your personal financial situation is such that you are no longer able to guarantee debt (in the eyes of a bank), you'll need to find another investor to take recourse on the note. Depending on the size of the deal, so institutional investors will do this for a fee.
Hope this helps! DM me if you have any other questions.
Definitely go to another small local bank that has their own portfolio loans. It took me awhile to locate some in my area but now I have about 3. Last year I closed 3 portfolio loans with 4 or more properties per loan. If you are not over 10 properties I would consider standard loans because rates are much more appealing.
@Rocky V. - I am about to hit my FNMA limit, as is my wife, so we are shopping local banks in DFW. Talked to Justin State, have Happy State and Southwest on my list to contact. Can you recommend any others?
@Shawn B. Portfolio loans vary in rate, sometime drastically, based on bank. I'd plan for 5% amortized over 25 years.
Ok thanks so if I have 20 percent down payment to buy a new income generating property and a million dollar in loan on other properties. Portfolio loan can still be applied for new property ? Or would they look at debt ratio etc ?
@Shawn B. This is why mom and pop investors never make the next step.
Commercial loans is a totally different game. 0-1million dollar loan is no mans land with the worse terms and recourse. I can help if you have any advice as some who made the transition.
I have found a 20 unit how can I finance it with 20 percent down payment. I have already guaranteed lot of loans so can the cash flowing properties be financed by any bank
I’ve only done 20% on single families. My multi units are 25%.
are these no doc loans ie only look at property cashflow and appraisal and not personal debt to income ratio ?bcuz mine is v high , can i still finance like 20 units if i hv 25 percent. Downpayment
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