I want 50 rental properties in NJ in 2 years...

6 Replies

I'm not kidding. So I guess I'm looking for a portfolio lender to assist me in reaching my goal. The short, I'm a wholesaler with access to extremely discounted properties and I want to start buy n holding every other or all of them asap.  I have good credit a steady GOV. job and the house my wife and I live in is in her name. 

I will start cold calling local banks but figured I'd reach out to fellow members for some guidance! 

Nathan

What an awesome goal @Nathan Paisley ! Have you considered @Brandon Turner 's BRRRR strategy? That might be good to get the ball rolling. To help with the portfolio lender small local banks are usually investor friendly. I hope all is well and update us on your progress!

Brian

@Brian C. Thanks man, I was leaning in that direction... but I can't stand seeing how much money I'm throwing away on these wholesale deals it honestly makes me sick. I'm looking up lenders now and may have found a few, we'll see... I'm also going to talk to my transactional lender and see if he can help me. 

I know somewhere on this site, somebody might know someone who knows a guy that once upon a time knew somebody that does the lending I'm looking for! 

Help me help YOU!    :)

I just hooked up with one. How I found them:

Went on the FDIC website and looked up all banks around where I'm buying, then started filtering them down by how many branches they had in the company as a whole, not just in the area. When I got down to 3 to 5 branches per bank, that's where I started. Set a meeting with one of them, brought in my business plan, some sample deals, & some other materials, they presented me their side, and we're ready to do business, and I have no cap on the mortgages they'll give me, as long as the financials are good. Try it, you might have some luck.

@Clayton P.   Thanks so much for this tip, this is great. Would you mind elaborating on your post a little more?  I have a list of local banks that I am planning on calling to set up meetings like you said.  As of now, my plan was to create a little packet to give them that would include: Who I am and what I am doing, my criteria/ types of properties I am looking for, and examples of past flips and rental units that I have purchased.   These would include pictures, P&L excel sheets, and so on.  

In your experience, who is the best person to ask for or speak with?  What have you found to be the best way to partner with the bank?  Also you said that they presented their side.  Can you go into more detail?  What kind of things did the banks say or ask of you the buyer?  Finally it sounds like you all were able to reach some common terms.  How do you think a typical deal will play out in this type of scenario?

Thanks so much

[email protected] | 301‑466‑7432

Originally posted by @Clayton P. :

I just hooked up with one. How I found them:

Went on the FDIC website and looked up all banks around where I'm buying, then started filtering them down by how many branches they had in the company as a whole, not just in the area. When I got down to 3 to 5 branches per bank, that's where I started. Set a meeting with one of them, brought in my business plan, some sample deals, & some other materials, they presented me their side, and we're ready to do business, and I have no cap on the mortgages they'll give me, as long as the financials are good. Try it, you might have some luck.

I'm interested too! No cap on the number of mortgages? How much are you putting down for each new property? Before our last purchase I looked at picking up 3 houses from the same seller as part of a portfolio he was selling. The banks I talked to said they could do up to 10 mortgages, but required 20-25% down and I had to do a separate closing on each property (so3x the closing costs). Seemed like there should have been an easier way.

Our latest purchase is a 4 plex. I'd love to go bigger for the next. DH and I both have 800 credit scores but I feel like it will take a couple years to come up with 25% down for a 6+ unit.

@Andrew Michael Sure man. But: telling you in advance that there are way more knowledgeable guys than me on BP. But my experience was this:

To go my route, you'll want to call and ask to speak to their commercial lender. We went back and forth via email & she offered to bring in their residential lender too, so it was the 3 of us in the office together. To sum it up, they offered loaning on 70% LTV (construction funds included & released in draws by milestones if needed - as long as it fits inside the 70% LTV), fixed for 5 years, then readjusts upwards to the day's rate, then another 5 years, etc. 30 year amortization, no points. They were very receptive, especially if you're investing in the zip code the bank is in - they're big on strengthening their local economy, and nobody does that better than real estate investors. In our setup, I'd be bringing in a PL to fund that 30% down (PL and I have an LLC), we split ownership by whatever the operating agreement states, LLC as the grantee. That was just how I would use them. But yeah, no caps on the amount of mortgages you hold and as your name / your LLC builds more of a relationship, they said the costs/terms get more favorable.

They asked me to bring in past 3 years tax returns of either myself or the LLC(s), and P&L on the properties I own, and to pepper inside of that, I included my business plan, before&after pics of a rehab I did on a unit, & some other things. $10 at staples for a nice portfolio-folder, business card in the corner, and that was all she wrote.