Columbia, SC · Member since 2018 · 27 posts · 16 votes
New investor considering a package deal of 5 low valuation homes. All currently rented. The rent/price % ratio and cash on cash numbers look strong.
My concern is financing. Even if I have 20% down, will a bank lend me the 80% considering each property would appraise for ~$30k. Has anyone been in a similar situation?
I'm guessing it won't be easy but start talking to your local credit unions or smaller banks to see if they offer these types of loans, common term in our world is portfolio lender but some smaller banks just call it a commercial loan or something else. Just lay out what you're wanting to do and ask a bunch of different banks. Chances are someone out there will do it. The question is will the deal still be there by the time you find them?
Rental Property Investor · SC · Member since 2017 · 37 posts · 35 votes
8y
Brian,
I second Derek on his advise. Don't forget about private money and trying to refi out of them individually after getting on title. But you definitely want to get solid relationships with local lenders regardless. So start there. Google search for all local banks and CUs in Cola and start making calls. Make sure they do investment property loans and get an appt to meet the lending manager or loan officer that will meet you. The BP pro tool can put the deal into a nice PDF that you can print and take with you to show them what you have in mind and the numbers. Good luck.
I will start reaching out to community banks and CUs here in Columbia, South Carolina.
Brian, I would recommend speaking to Stacy Peake at Caro Financial on Rosewood. He doesn't love SFHs but he may be interested in multiple. Good person to talk to regardless. He's pretty aggressive with getting things done.