Investor · Los Angeles, CA · Member since 2016 · 94 posts · 93 votes
BP Family, Thank you in advance for your help!
I currently have 4 x cashflowing multi-family rental properties. All 4 are financed with traditional 30y residential mortgages with CHASE bank. (I know, not ideal, but it just worked out this way)
I have found 2 x new Fourplexes, off-market, and I'm ready to buy ASAP. Before I go back to Chase and ask for a 5th and 6th mortgage, (just the thought of their crappy team and process makes me cringe) I wanted to look at different financing options. Also, I have set up an LLC and want to start buying under the company name. Down payment is no issue, I have plenty of funds and high W2. My market is College Station and Byran in Texas.
Can you help me with:
- Do you know any good lenders for 'buy and hold' loans in Texas (Not big banks)?
- Do small banks/portfolio lenders allow 30 year loan terms, or are they mostly 15 or 20 years?
- If I have to lend from BIG banks, which ones, if any, let you buy under an LLC?
I have cold called a few local TX banks, found a few lenders listed here on BP, and researched online sites etc.. BUT, most of my career success has come from personal referrals/recommendations... I would love any input you have to offer.
Message me and I will give you the names of two local banks I use in BCS and the name of a local mortgage lender. As far as terms, my experience has been most comml portfolio loans are 20-25 years with 20-25% down. You can buy in the name of your LLC. The mortgage is much better terms but A LOT more pain and paperwork and you would have to tranfer into your LLC after you close the loan.
I just realized you are in california. That creates more complexity because the bank can only take a guarantee OR the property as collateral. The comml banks will still do it, but the terms will be more conservative.
@Joel O'Leary thanks for posting this. We also have a "Texas" only forum which has some good people in it as well. Feel free to hit us up there too if the need were to ever arise.
- Like many places, there are plenty of banks that will lend to the types of properties that you described but few that are experts in investment property financing. When you interview banks ask about when the rental income should be used to help you qualify for a loan (it should be immediate), what their tollerance is for you switching to an LLC after closing (should be no issue), and if they sell their loans. If they sell their loans and you have it under an LLC name, who's to say that the next bank may not have an issue? If you can find those 3 things, and the bank should be able to answers these IMMEDIATELY (without having to go ask), then you will have a good lender for you.
If you need any other assistance please let me know. Thanks!