Financing multi families

7 Replies

hi,

      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 

Thanks

Shaw

@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.

Thankyou @Rocky V. and @Tyler Kastelberg for your responses So what I said the limit of number of cash flowing multifamily properties one can buy using portfolio loans and what is usually interest rate for portfolio loans

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 ?

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