considering asset based lending in Iowa & Nebraska - Advice?

2 Replies

Hoping to find some options/advice on asset based lending in the Council Bluffs Iowa and Omaha Nebraska area.

Last year I purchased my first investment property (cash) SFH in CB Iowa, did a bit of rehab and signed a multi year agreement to the current renter. Additionally I am in the process of closing on two more single family homes that I will also pay cash from my own personal funds. I have recently found 2 additional properties that are excellent opportunities off market in the same area. I am worried about extending myself too far by using all of my available cash on hand before actually having the loan options in place.

The original plan was that after I found the perfect deals and purchase 2-3 homes in cash I would recycle the investment cash via refi pulling out 70% of appraised value and simply repeat this process as I come across great deals. Well now I am at the spot where I do not want to miss these new deals but again am worried to spend all of my cash only to realize that the refi process will be very difficult.

I sold my business last year and do not currently have a w2 income. I do have excellent credit and cash to make these purchases and rehab but just need to be put in contact with the right local bank, private lender or anyone that can point me in the right direction at the moment so I can continue purchasing using only the properties and my personal credit as collateral. Any help or advice that you could provide would be very much appreciated. Thank You

Hi Jake!

Congrats on owning homes free and clear. Since you sold your business and don’t have W2 income, getting a residential loan may be difficult.

I would reach out to a community bank for a commercial loan. The loan will be based on the income of the properties. You could probably lump your three homes into a commercial portfolio loan if you plan on holding those properties.

Another option is to look for a private lender that is willing to hold a note in 1st position.

PM me know if you need recommendations for private investors or a commercial bank in Omaha.

Jake,

We work with private money lenders and hard money lenders. Both are short term solutions to getting properties under contract and getting them rehabbed and ready to rent/flip. I also do a ton of seller finance deals here in Lincoln, Omaha and Council Bluffs.

I recommend local banks and would refer you to Jerry Sukup at Central National Bank here in Lincoln. Let me know if you want his contact info. I like him because he owns a real estate portfolio and most of his lending deals with real estate.

Lance