Lending Advice Portfolio Lending

4 Replies

So I am looking for some advice in terms of financing decisions. I have been looking for a property in the Baltimore County area and my hope was to purchase the home in all cash. My hope was to purchase a deal through all cash funds. I am leaning more and more towards financing the deal with a large down payment as it is a HUDhomestore Property. I'm currently looking for a reputable portfolio lender in the Washington D.C./Arlington Region, that specializes in working with investors. I am not looking for a hard money lender.

Thanks,

Barry

Does anyone have a reference?  The other kicker is that the loan would be under $100,000.00  Those that have reached out have not been able to do a loan for that small of an amount.  Any advice would be great.

Barry 

A portfolio loan under $100k? Heck, it's hard to find a lender that'll lend under $75k and that's for just one property. 

I currently live in Richmond, VA, about 2 hours from you. I'm curious to know where you're investing in D.C. to be able to get a handful of properties for $100k -- assuming I'm understanding correctly.

@Timothy Hero The terminology is confusing. A "portfolio lender" typically refers to a lender who keeps the loan in their portfolio, rather than packaging it and selling it to one of the agencies or other large investors. This gives them full control of the loan parameters. Portfolio lenders will lend on a single home/property or a blanket loan (on what one would call a portfolio). I think @Barry Mountain is talking about a portfolio lender on a single property.

@Barry Mountain As Simon Sinek says, start with the Why. You said no hard money and you want to make a large down payment. Why do you want to do that? If you have more details about what you are trying to accomplish, I can probably give some creative options. I'm assuming those parameters are for a reason - maybe you don't want to spend too much on interest, you think hard money is too expensive, you don't want much leverage because of the risk or whatever. As an example, it might actually be cheaper for you to get a bigger conventional loan and hold your cash in reserves. Or maybe you use Hard Money to purchase and some of the renovation and then refinance to conventional and you are able to create all of the equity in the home and keep all of your cash.

One other important point, is this owner occupied or strictly investment?