I have been buying and holding in SC for the past three years, but I would love to grow my my portfolio to include multi family units and eventually apt complexes. Any advice on how to leverage my current properties in order to make the bigger purchases?
Thanks in advance,
@TJ G. You don't give any current debt information. Do you own these outright? There really is no secret to leverage rentals. You either get a mortgage or home equity loan. Not too many banks offer HELOCs on rentals, but some do. For a mortgage you could go conventional, portfolio or use a private lender.
I own the properties outright. Would it just make sense to do a cash out refi?
It could make sense to do a cash out refinance, but it really depends on how the numbers look on the refi and also what you're going to be purchasing. There's not much to this. You need to or have someone analyze the situation, see what's possible for the refi, see how the numbers look and then look at the numbers on the purchase and see how they all together affect your financial situation.
You may be able to find some loan product where the lender would allow you to pledge your current projects as collateral for an acquisition loan. This is a good question for an experienced CRE mortgage broker. @Darryl Dahlen used to post frequently. You may try reaching out to him.
@Bryan Hancock ...good advice. Funny you post about Darryl. I work with Darryl.
Thanks for mentioning my name, Bryan. I'm still around, but I am very focused on our multifamily loan origination side which keeps me busy. As Jared mentioned, he works with me so I let him handle the active posting side here on BP these days.
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