Lending partner for investment plan or property?

Question

I want to scale my RE investments. I’ve been investing for 15 years with rentals, flips and BRRR. Now I’m down to only 1 rental, $200k HELOC on my primary, 800+ credit score, and a high income job.

I am looking for how to bring in a lender partner that I can work with on multiple deals, single or multi family. But I haven’t identified the properties yet, which lenders usually want to see through a formal application.

Will lenders entertain an early-stage conversation about how much I can potentially borrow across a few different properties? What is the best way to prepare for that conversation? It seems like loan products for investors have higher interest, so any advice on how get the best rates, ie which banks/lenders?

Doug Smith · Answer

That's usually a good chunk of my day. I'll get a lot of calls that say "so-and-so said to call you about building a duplex, etc". It's really best to know how the process works and what you need to do to prepare. Looking for property is not the first step...it's understanding the process and what you need to do to get ready for it. We're always happy to talk with folks that are curious and want to learn.

Kris Holt · Answer

J.C.,

I'd be happy to help and would more than welcome a preliminary conversation, and even be willing to generate a hypothetical term sheet for what you're looking to accomplish.  We don't need income docs or anything of that sort and our rates are competitive with banks.  If you'd be willing to answer some surface questions about yourself and what the deals would look like, I could get you an idea.  Let me know and we can set something up.

Stephanie Medellin · Answer

Yes!  Most lenders will gladly talk to you to help you start planning a purchase.  The best thing to do is have a conversation with a broker or lender (or a few brokers or lenders), see who you like working with and get a rough idea of how much you would qualify for based on verbal information.  This is easier for someone who earns a fixed salary, no overtime, no complicated pay structures, not a business owner, etc.

You can also fill out an application, submit your documents (income, assets, etc), and get pre-approved.  This will allow you to shop for properties more easily, and will also make it easier to run different scenarios for different properties that you view.

The best way to prepare is to have your income for the last two years and YTD available, know how much you have available to spend, and write down any questions you want to ask.

They should be able to give you a rough idea of an interest rate (of course interest rates change daily) based on estimated credit score, purchase price, down payment amount, location, loan type, property type, etc.

All of this is necessary before looking at properties because you need to know how much you can borrow, how much you need to put down, and approximately how much you will make from each potential rental.

Rob Beeman · Answer

Can't speak for other lenders, only for what we offer. We supply loan quotes all day long to investors that buy & rehab 1-4 unit properties and 5-10 unit properties (including mixed use in all of those unit sizes). Many times they do not yet have the property under agreement. In some cases they don't even have a targeted property, but need to run a scenario. There is no cost and it supplies a clear understanding of the numbers for the transaction. I would think this is a common practice that lenders perform, but if not....message me.

Lisa Fortune · Answer

Yes, lenders often entertain early-stage conversations, especially when you have a strong track record like yours. Reach out to investor-friendly lenders to discuss potential borrowing across multiple properties, even if you haven't identified them yet. Highlight your 800+ credit score, high income, and $200k HELOC. For the best rates, consider working with a company like ours, which specializes in real estate funding and can guide you.

If you're ready to explore these options further, feel free to connect!

Dalton O'Donnell · Answer

J.C.,

We dont need a formal application upfront to give you an idea of rate, down payment, fee's etc. We can offer both in house private money for bridge loans/fix n flips as well as all your other investor loans including DSCR, Conventional, Non-QM, and Commercial.

If you want to run through a hypothetical then I'd be more than happy to. I will send you connect request and we can discuss further.

Caleb Brown · Answer

@Dalton O'Donnell is the man to talk to about lending. Happy to chat further or about the Kansas City area :)

Robert Portal · Answer

Hi J.C., you don't really need to fill out a 'formal' application to discuss your borrowing ability. I always discuss what you're trying to achieve before hand and, if it makes sense, will ask for supporting documentation for a formal pre-approval. We can even issue a TBD pre-approval without a subject property. Even more, I just rolled out with an investor program where I don't need to do a hard pull at all. Happy to discuss!

Donna Rundo · Answer

Hi J.C.!

With your experience and strong credit, lenders will likely be open to chatting about potential deals even if you don't have specific properties yet. Just be ready to share your investment plans and financials to help them gauge what you might be able to borrow.

For the best rates, try reaching out to a few different lenders and compare their offers. If you need any recommendations or want to discuss this more, let me know!

Kristie Laufer · Answer

Hey,

Absolutely, lenders are often open to chatting early on, even if you haven’t nailed down the properties yet. Just have your financial details and investment goals ready for the discussion.

To get the best rates, it’s a good idea to check out both banks and lenders who specialize in investment properties. Comparing a few options can really help.

Let me know if you want to talk more about this or need any help!

Lending partner for investment plan or property?

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