Financing Options for Three SFH's

[Ray Brandhurst]

I am working with an investor that is cashing out their portfolio. The investor is selling three homes as package for $40K each. I could buy the homes with cash but would rather finance the deal. Buying the homes outright with cash yields a ~10% ROR whereas putting 20% down with a 6% mortgage yields ~30-40% ROR.

My question is what would the community recommend as far as financing this deal? 

• Three separate conventional mortgages? 
• Pay cash and finance the homes after?
• Portfolio/umbrella/blanket loan?
• Something creative? 

Thanks,

Ray

[Kerry Baird]

I was writing this up to answer a different post, and the OP keywords would do well for this answer, too.  Of the commercial type of mortgage for multiple properties, these lenders do aggregate, blanket, or portfolio lending.

Disclaimer: When I refinanced three of my rentals at the same time, I was still under 10 mortgages, and used Ridge Lending for 3 conventional mortgages.  I was researching to find lenders that would do more than one at a time, and haven’t used any of these.

Here are the few that say they do aggregate or blanket type mortgages.

Dayton Capital

Colony American bundles 5+

Conventus

Corevest

FOAC bundles 7+

Rental Home Financing will bundle 1 to 1000 properties

Visio 3 to 7 in a bundle