Portfolio lender

6 Replies

Hey BP, 

I was wondering if using portfolio lenders to get started investing is a good idea? If so, I need advice on what I should put into a portfolio to present to portfolio lenders? Thanks for any advice!

Byron Scott yes portfolio lenders can be great. It's a great way to obtain more property. You should put everything in there that you would give a banker for a home mortgage w-2, 1099, pay stubs, assets, liabilities, etc. also include a business plan if you have it. Brandon Turner suggests putting a credit report in there and making a table of contents. I forgot what podcast that was in

@devan mcclish thanks for the advice. I listened to the podcast that discuss some portfolio lenders. But I still had questions about how exactly I could put together one (should I take a business angle? Or could I attemp to do one for a primary residence loan then move and rent it out) and if it was good to get started investing. I guess I'm trying to figure out if I should take a business angle as a beginner with no experience or as a general customer attempting to get a loan?

Do a few conventional to begin with. Terms are better. Use portfolio after you exceed conventional underwriting guidelines.

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@cliffharrison is right. You will likely get better terms from a conventional loan, if you have steady W-2 income and good credit. Typically after 4 houses you will want to consider a portfolio loan. If you have built-up any equity against the full APV, you might be able to get cash-out by borrowing up to 75% LTV. Good luck.

Originally posted by @Byron Scott :

@devan mcclish thanks for the advice. I listened to the podcast that discuss some portfolio lenders. But I still had questions about how exactly I could put together one (should I take a business angle? Or could I attemp to do one for a primary residence loan then move and rent it out) and if it was good to get started investing. I guess I'm trying to figure out if I should take a business angle as a beginner with no experience or as a general customer attempting to get a loan?

 Byron conventional lending is pretty straight forward  investing your own properties in your own name. Also depends on the type of properties your looking for. Quadplex and under are the way on conventional lending.  If you are in a partnership and titling homes in an llc, portfolio lending may be your route. I currently have homes I use under conventional loans I hold on my own and working on a portfolio loan with the properties I have through my llc partnership. My strategy is to cash out refI through a portfolio loan the ones I hold free and clear. Take the cash for the next project. Talk with local banks and community banks they would be a great first step