So I have built a rental portfolio of 6 residential houses 2 commercial buildings and started construction on a retail center that will be 9500 sqft (which I have leased out 100% already with leases). Everything I have done I have done thru my own hard money from my retail business and rental income no banks or lenders involved. But im at a point now where im considering some sort of funding to where I can involve my self in bigger deals. What are my best options? Never dealt with banks or lenders.
@Joe Aref Congratulations on being in that position! You truly deserve a round of applause.
The power of leverage is so HUGE! People like you understand how to use it responsibly by not fully leveraging the properties in the event of a market change.
It looks like you are in a position to use conventional products with lower rates that will let you pull out up to 75-80% of the total value of the property. Remember that the SFH will be based on comps or an appraisal while the commercial buildings will be based on their performance.
You hold the power as these properties are free and clear which will allow lenders to compete for these low risk vehicles.
As a first step, I would start to build professional-looking proformas for the commercial properties with actuals from prior years so that you are prepared for the lender questions. It might be worth it to hire a RE CPA firm that will give you the product that you need. I wouldn't commit to any appraisals / comps for the SFHs until you identify the lender to avoid paying for the appraisal more than once.