Palpark, NJ · Member since 2016 · 69 posts · 11 votes
I'm looking at a portfolio deal with 3 properties (10 units total). The seller isn't interested in owner financing so I'm looking to get a loan but I'm stump on where I should start looking. I heard about SBA 7a and Freddie Mac but I'm not sure if this would qualify as it's multiple (residential) building (all less than 4 units).
Palpark, NJ · Member since 2016 · 69 posts · 11 votes
8y
@Tyler Kastelberg I wasn't considering the individual loans b/c of the bank cost. BUT I'm wondering if this would really make much of a cost impact. I suppose I need to reach out to all my local bank contacts and see what options they offer
Lender · Hackensack, NJ · Member since 2016 · 1k+ posts · 372 votes
8y
What are the property values?
If you didn't want to go the individual route you can get a portfolio loan however expect rates to come in around 6% sometimes as high as 8% depending on the situation
Palpark, NJ · Member since 2016 · 69 posts · 11 votes
7y
I think this makes sense. The seller wants to sell it as a bundle as they're out of state, but I'm going to see if they're willing to just sell 1 than 0.
Rental Property Investor · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
7y
@John Moon Bridge lenders should be able to provide short-to-medium term financing (6 months to 3 years). This can allow you to sell an asset, improve your personal balance sheet and/or be in a better position to get conventional financing.
Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
7y
@John Moon This is a very typical commercial loan. Talk to your local banks, tell them what you want to do, and they can easily tell you how to do it. You will need 25% down. They will loan you 75% of the purchase price. You should be able to answer basic questions that they have such as who will manage the property. You will need a personal financial statement and provide two years of your personal tax returns.
@John Moon one thing to think about too, is if you get a portfolio loan, what happens if you want to sell just one of them? or two of them?
You can sell individual properties from the bundle. You would need to get a release from the lender. The closing attorney would wire funds to the lender for the release amount and they would clear the deed for that specific property.