lending advice needed

8 Replies

I have seven properties with thirty year fixed residential mortgages. So I have three left to go before I'm forced into using commercial loans. I'd like to shop rates for 30 year fixed loans to finance SFR's in Baton Rouge, Louisiana. Can anyone recommend a mortgage broker who can help me find the best lender with the best rate. I hesitant to use sites like "Lending Tree" because they run a credit report and then you get bombarded with 8,000 emails, and most of the emails are from big banks that won't even finance investment properties.

Also, I'm looking for a good lender in Philadelphia, PA to finance an investment property with a 30 year fixed loan.  Any recommendations would be appreciated.

@Fred Stevenson

What is your hesitancy to use commercial loan products that offer 20 year amortization with rates from 4.5-5.5%?  Although they typically have 5 year terms, it shouldn't be a big issue to renew the loan at the end of the original term for another 5 years.  It sounds like you are building a significant portfolio and are about to have to start looking at these kind of loans.  My suggestion is it is best to start developing relationships with the lending officers at smaller banks now so when you really do need them you are ready to rock and roll.

Take massive action and I'll see you at the top!

I've already used commercial loans on a couple of properties.  The main reason I'm interested in the residential loan is I prefer the 30 year term with a lower fixed rate.  It's better cash flow, and an artificially super low rate right now. 

Prime Lending on Bluebonnet beat everyone by far on our two quad plexes last October. We dealt with Brittany Boudreaux.

Hi Fred

I was just reading through some of your recent posts regarding commercial financing and you already have several properties using residential finance.

I am just starting out I have been viewing some properties one of which we put an offer on. The current financing option in place was a conventional mortgage with 25% cash down it was flagged to be I should be careful not to wrap up so much cash if I can avoid it. I am looking at properties around the $90-120k mark.

Would you mind giving me some advise on what you did?

Thanks


Dan

I put 20% down and got a 30 yr conventional fixed except for two properties. The other two needed a lot of rehab so I preferred a commercial loan on those two. I went the commercial loan because they were willing to loan up to 80% of the ARV which covered the entire purchase price plus some of the rehab.

The rate on the commercial loan was about 1 point higher and fixed for 7 years on a 20 year amortization schedule. 

Credit Unions have no prepayment penalties and their rates are very competitive. Also their underwriting is local and much easier to deal with. Each CU has a different focus for lending, ie some others only lend to people who live and work in their region, some lend only on Single Family, others only for investment purposes but 20/25 amort. Dont over look CUs as an option, many of the flippers I lend to then take out our hard money loan with local CUs with permanent financing with cash out.