Portfolio loan options?
Hello everyone. This is my first time posting on here but I am a big time fan and have been reading post everyday on here for a few years now. I have a question that I am facing and I figured why not put it out there and see what all the smart folks on here think.
I want to thank you all in advance for taking the time to read my post and responding to it. So with that here is my situation:
I am a full time real estate investor who used to pay cash for all my properties. Last May I purchased a home (my personal residence) for $450k and ended up needing to borrow the money from the bank to close. The bank loaned me $420k on the home for 12 months at 4% interest only. I also put up a 290 acre farm that is right next to my personal residence that I own free and clear and is valued/appraised at $420k (so the bank has plenty of collateral and equity between the two properties). Additionally at the time when I received the loan I had approximately 26 SFR rental properties all paid for and owned outright. They are valued at $30k-50k each and rent for $825 on average. Again, I had zero other debt and liabilities. The reason they gave me only a 12 month loan was the bank didn't like the numbers and basically wanted to give it 12 months for my tax returns to look better since I am an active investor and always buying more houses. I have since purchased 3-4 other SFR (all paid for in cash and owned outright) and 2 apartment buildings on land contracts. The land contracts I owe $75k and $120k on respectively (that was the total starting balance. I've been paying on them for a few months so the principle is slightly less but for simplicity sake those are the balances). Both of the apartments more than cash flow. Right now my monthly gross income is about $25k. Since I only have a 12 month loan I have to go back to the bank in May of 2018 and see if they will approve the loan on my personal residence again, however I am afraid that with these other two land contracts they will not loan me the money again. I would like to see what my options are in either getting a portfolio loan or just exactly what my options are so that when May rolls around I am not facing a time crunch. By the way I will have approximately $350k income between now and May of 2018 so if absolutely needed I could take that and pay off the two land contracts to satisfy the bank (I could do this although it wouldn't be the most beneficial to me in the long run and I would like to avoid doing so). By the way, just so everyone knows I am based in Ohio just in case that might matter so how for state law being different or for different lending requirements.