Can I get a Portfolio Loan for 3 SFR spread across two states?
Matthew GravesPro Member
Investor · Charlotte, NC · Member since 2017 · 36 posts · 11 votesCan I get a Portfolio Loan for 3 SFR spread across two states?
Most Popular Reply
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
3y@Matthew Graves- thanks ...very unlikely to find a lender that will do one " blanket " mortgage on multiple properties in different states ....also most lenders will likely not be interested in wrapping land in with sfr properties ...if you locate some options - it will likely be quite pricey
12 Replies
- Lender · Catskills / Hudson Valley / Greater NYC Metro · Member since 2023 · 24 posts · 11 votes3y
Hi @Matthew Graves,
Sounds exciting! No, it shouldn't matter at all that they're in different states. Your lender will structure it appropriately. And they should also be able to work with you on the land loan as well. All about finding the right lending partner!
Best,
Clark
- Member since 2022 · 41 posts · 20 votes3y
Being in diffrent states can sometimes be an issue. The lender will need to be licensed in each state. For DSCR lending, NC and PA are pretty simple so most National lenders should be fine with these propertes. Total loan amount is also an immportant factor when qualifying a portfolio loan. Feel free to reach out directly if you have any questions.
- Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes3y
@Matthew Graves- thanks ...very unlikely to find a lender that will do one " blanket " mortgage on multiple properties in different states ....also most lenders will likely not be interested in wrapping land in with sfr properties ...if you locate some options - it will likely be quite pricey
- Lender · Chicago, IL · Member since 2021 · 424 posts · 145 votes3y
Something not considered in many of these replies are prepay rules and asset types in each state. Also the ability to foreclose on the lender's behalf. Moreover, turning it into a multi-collateral loan would make the secondary market transaction needlessly more difficult with no upside for the lender or note buyer.
That being said...
It is unlikely you'll find a letter to write a multi-collateral loan with properties in different states.
Question I'd ask is what benefit do you gain from doing this? You'll likely have partial release provisions that prohibit you from making any profit if you were to sell off one of the assets.
- Investor · Charlotte, NC · Member since 2017 · 36 posts · 11 votes3y
Quote from @Jason Taken:
Something not considered in many of these replies are prepay rules and asset types in each state. Also the ability to foreclose on the lender's behalf. Moreover, turning it into a multi-collateral loan would make the secondary market transaction needlessly more difficult with no upside for the lender or note buyer.
That being said...
It is unlikely you'll find a letter to write a multi-collateral loan with properties in different states.
Question I'd ask is what benefit do you gain from doing this? You'll likely have partial release provisions that prohibit you from making any profit if you were to sell off one of the assets.
Good point that I honestly didn't even think of regarding the partial release. My thought was to wrap them all in one in order to have easier management and a better rate ideally.
- Investor · Charlotte, NC · Member since 2017 · 36 posts · 11 votes3y
Quote from @Dave Skow:
@Matthew Graves- thanks ...very unlikely to find a lender that will do one " blanket " mortgage on multiple properties in different states ....also most lenders will likely not be interested in wrapping land in with sfr properties ...if you locate some options - it will likely be quite pricey
I'm finding that out after speaking to a few lenders. Thanks for the input!
- Member since 2022 · 41 posts · 20 votes3y
Quote from @Matthew Graves:
Quote from @Dave Skow:
@Matthew Graves- thanks ...very unlikely to find a lender that will do one " blanket " mortgage on multiple properties in different states ....also most lenders will likely not be interested in wrapping land in with sfr properties ...if you locate some options - it will likely be quite pricey
I'm finding that out after speaking to a few lenders. Thanks for the input!
Generally speaking going the portfolio route will not be more expensive. The entire purpose of this type of lending is too save money when compared to running single asset transactions for the properties. Origination costs and underwriting fees can be substantially less.
Regarding release provisions(atleast with the loans I see), there are no fees but you do need to pay additional funds towards the remaining principal. For example, you have a five property portfolio loan with 100k owed on each property. If you want to release a single property you payoff the 100k owed plus an additional 20k that is spread across the remaining properties. Now you have a 4 property portfolio loan with 95k owed on each property.
- 3yRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
Quote from @Matthew Graves:
We are looking to refinance three of our rental properties. Two of them are new construction single family homes in North Carolina (Lincolnton, NC & Statesville, NC) and the third one is a renovated single family home in Pennsylvania (Natrona Heights, PA). All are performing.
Couple Questions:
1. Does it matter if the properties are in different states?
2. Can anyone recommend a lender who would do this?
3. Any chance we could throw a parcel of undeveloped land (Dallas, NC) in on the refi as well?
Whats the reason you would prefer to do one loan instead of bundling maybe the NC properties together and a single asset loan in PA? The other posters have covered it well, generally it should be "possible" but not really a great option because of the different laws in each state make squeezing it into one doc set a pain and hassle
Harpoon Capital514 Reviews - Investor · Charlotte, NC · Member since 2017 · 36 posts · 11 votes3y
Quote from @Robin Simon:
Quote from @Matthew Graves:
We are looking to refinance three of our rental properties. Two of them are new construction single family homes in North Carolina (Lincolnton, NC & Statesville, NC) and the third one is a renovated single family home in Pennsylvania (Natrona Heights, PA). All are performing.
Couple Questions:
1. Does it matter if the properties are in different states?
2. Can anyone recommend a lender who would do this?
3. Any chance we could throw a parcel of undeveloped land (Dallas, NC) in on the refi as well?
Whats the reason you would prefer to do one loan instead of bundling maybe the NC properties together and a single asset loan in PA? The other posters have covered it well, generally it should be "possible" but not really a great option because of the different laws in each state make squeezing it into one doc set a pain and hassle
After learning about the different laws, specifically in PA, it seems we wouldn't be able to do them all together after all. So that seems to be the plan now, 2 together in NC and 1 in PA by itself. We currently have a quote at 7.25%, 30yr, no points, 75% LTV. Not sure we're gonna get better than that. We'll probably sell these in a year or two so buying down the rate wouldn't make sense either.
- 3yRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
Quote from @Matthew Graves:
Quote from @Robin Simon:
Quote from @Matthew Graves:
We are looking to refinance three of our rental properties. Two of them are new construction single family homes in North Carolina (Lincolnton, NC & Statesville, NC) and the third one is a renovated single family home in Pennsylvania (Natrona Heights, PA). All are performing.
Couple Questions:
1. Does it matter if the properties are in different states?
2. Can anyone recommend a lender who would do this?
3. Any chance we could throw a parcel of undeveloped land (Dallas, NC) in on the refi as well?
Whats the reason you would prefer to do one loan instead of bundling maybe the NC properties together and a single asset loan in PA? The other posters have covered it well, generally it should be "possible" but not really a great option because of the different laws in each state make squeezing it into one doc set a pain and hassle
After learning about the different laws, specifically in PA, it seems we wouldn't be able to do them all together after all. So that seems to be the plan now, 2 together in NC and 1 in PA by itself. We currently have a quote at 7.25%, 30yr, no points, 75% LTV. Not sure we're gonna get better than that. We'll probably sell these in a year or two so buying down the rate wouldn't make sense either.
whats the prepay on that? Seems like a solid quote for sure
Harpoon Capital514 Reviews - Investor · Charlotte, NC · Member since 2017 · 36 posts · 11 votes3y
Quote from @Robin Simon:
Quote from @Matthew Graves:
Quote from @Robin Simon:
Quote from @Matthew Graves:
We are looking to refinance three of our rental properties. Two of them are new construction single family homes in North Carolina (Lincolnton, NC & Statesville, NC) and the third one is a renovated single family home in Pennsylvania (Natrona Heights, PA). All are performing.
Couple Questions:
1. Does it matter if the properties are in different states?
2. Can anyone recommend a lender who would do this?
3. Any chance we could throw a parcel of undeveloped land (Dallas, NC) in on the refi as well?
Whats the reason you would prefer to do one loan instead of bundling maybe the NC properties together and a single asset loan in PA? The other posters have covered it well, generally it should be "possible" but not really a great option because of the different laws in each state make squeezing it into one doc set a pain and hassle
After learning about the different laws, specifically in PA, it seems we wouldn't be able to do them all together after all. So that seems to be the plan now, 2 together in NC and 1 in PA by itself. We currently have a quote at 7.25%, 30yr, no points, 75% LTV. Not sure we're gonna get better than that. We'll probably sell these in a year or two so buying down the rate wouldn't make sense either.
whats the prepay on that? Seems like a solid quote for sure
$0 on the PA one. Not sure on the NC just yet
- Member since 2023 · 2 posts · 0 votes3y
Quote from @Matthew Graves:
Quote from @Robin Simon:
Quote from @Matthew Graves:
Quote from @Robin Simon:
Quote from @Matthew Graves:
We are looking to refinance three of our rental properties. Two of them are new construction single family homes in North Carolina (Lincolnton, NC & Statesville, NC) and the third one is a renovated single family home in Pennsylvania (Natrona Heights, PA). All are performing.
Couple Questions:
1. Does it matter if the properties are in different states?
2. Can anyone recommend a lender who would do this?
3. Any chance we could throw a parcel of undeveloped land (Dallas, NC) in on the refi as well?
What's the reason you would prefer to do one loan instead of bundling maybe the NC properties together and a single asset loan in PA? The other posters have covered it well, generally it should be "possible" but not really a great option because of the different laws in each state make squeezing it into one doc set a pain and hassle
After learning about the different laws, specifically in PA, it seems we wouldn't be able to do them all together after all. So that seems to be the plan now, 2 together in NC and 1 in PA by itself. We currently have a quote at 7.25%, 30yr, no points, 75% LTV. Not sure we're gonna get better than that. We'll probably sell these in a year or two so buying down the rate wouldn't make sense either.
whats the prepay on that? Seems like a solid quote for sure
$0 on the PA one. Not sure on the NC just yet
I would double check the pre-pay, unless you are maybe using conventional lending??? You won't get a loan with that low of a rate without a pre-pay penalty using DSCR.
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