New to portfolio lending - could someone help evaluate?
Hello board,
as the title of the post states, I've new to portfolio lending and I was trying to evaluate an offer that I was recently approached with.
The lender is willing to finance in an equal amount to what the property can rent for, up to 80% of the purchase price. It can be for a single property/condo, or lumped up for up to 10 properties. The interest is 6.25% and can't be used for flips, as they charge a pre-payment penalty if you pay off the loan within the first 3 years. They don't look at tax returns or debt to income ratio to qualify -- basically, good credit and whether the property is rentable/numbers make sense.
Any thoughts, suggestions, criticisms would be greatly appreciated.
TIA,
Manuel