long term Financing Once you've maxed out 10 conventional loans?

1 Reply

I know that this topic has been posted before,  I was following that initial discussion, however the results were minimal, and perhaps someone may know of new options that have become available between then and now. 

I have been looking for reasonable lending options to continue building my rental portfolio past 10 conventional loans. The only options I have found have either had interest rates of upwards of 8%-11% .... short term 3 to 5 year Arms,  or if they are at a reasonable rate....  require a minimum loan amounts of $100,000- $150,000. Most of my success building my rental portfolio has come in areas of purchase prices between $70,000 - $100,000 so I would prefer not to have to force myself to spend more money on property just to meet a minimum loan amount if 100k after 25% down payment.

It has been suggested to Refi my current 10 conventional loans into a blanket or portfolio loan which would free up my 10 conventional and  then start the process all over again, but if  all of my current interest rates are between $ 4.5 % and 5.125% .... I cant see why I would want to refinance & decrease my cash flow by refinancing to significantly higher rates. 

Am i being completely unrealistic in searching for a long term 20- 30 year Fixed loan product at a reasonable rate? Let me know if i'm dreaming or I just haven't located the right people yet........  Just Fishing for lender options and suggestions for strategies that I may not be considering. Any advice or suggestions are greatly appreciated.

It has been suggested to Refi my current 10 conventional loans into a blanket or portfolio loan which would free up my 10 conventional and then start the process all over again,

That won't work.  When applying for a conventional loan the lender looks at the number of mortgaged properties.  Putting 10 properties into a blanket loan doesn't have any effect on the number of mortgaged properties.

30 year fixed rate loans at low rates exist because of government policies.  The market wouldn't offer those loans without government support, in the form of Freddie Mac and Fannie Mae that buy the bulk of those loans.    Once you get past the limits on conventional loans you're in the commercial space, with terms like you're seeing.  Certainly you want to shop around because there is a lot of variation.

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