The Portfolio loan myth

[Ashley Pimsner]

Hello BP nation, I just got a great 3 flat in Chicago under contract built in 2008 and fully occupied throwing off almost 2k a month cash (DCR>2) flow after PITI based on a 20 year am fixed at 4.625 with a 25% DP from a conventional lender and already preapproved.

I have read ad nauseum on BP about the myth of portfolio lenders, local community bank and/or commercial lenders having flexibility to offer loans based on cash flow from the asset without looking at your income or tax returns and I have not found that to be true.

Prior to applying for a conventional loan I tried over 20 portfolio, community bank, and commercial lenders in the Chicago area-even tried out of state national lenders, and they all came back and said the same thing!

We look at cash flow but ultimately they want last 2 years of tax returns and every single one had a 3 year declining prepay of 3-2-1.

Can anyone dispel the myth and provide a lender that only looks at cash flow and not income and tax returns.

No need to chime in with the likes of B2R or the like, I want proof real local bank portfolio lenders exist that don't look at personal income.

[Brie Schmidt]

@Ashley Pimsner - I have probably talked to 50 banks and have yet to find a "portfolio" lender.

The problem you are probably running into is price point.  Under $2 million is probably going to require a personal guarantee and under $1 million defiantly will.  

My bank will do a $150 flat rate pre-pay on a 5 year fixed at 5% - you can PM me if you want the contact information but they will probably require a PG