Lines of Credit

[Brandon Ingegneri]

I recently closed on my first large bundle commercial mortgage that comprises 6 of my two and three family houses. Up to this point, I have purchased outright, or refinanced with conventional residential loans, so this is my first experience dealing with true commercial lending. I have various HELOC's through my personal name on various pieces of property, but was curious what the best course of action would be in order to facilitate a line on the bundled properties. I have more than sufficient equity. Should I ask for a line on these houses through the commercial dept, ask for an unsecured LOC, or are there options that I have not even considered yet? Any recommendations from people with experience on the commercial side would be greatly appreciated. In the near future, I would like to still continue investing in multi families, but also begin purchasing larger unit multi family apartment buildings, and steel buildings.

[Charlie Fitzgerald]

I would take all of your existing debt to a commercial lender and get a portfolio loan on the entire pool.  Then I would use the same lender for future acquisitions and cross-tie to the extent necessary the available equity in your other assets with them.

I would get all real estate investment debt out if your name and into the name of your entity.