Question for all you mortgage smarties. I just came across a 4 home bundle. The numbers make sense and I'd use a hard money loan to get into the property.
I'm wondering what it would look like to refi in 6 months if all homes are on the same title. Would a lender be able to bundle all 4 homes into 1 mortgage?
@Veronica Haniger there are lenders that will bundle investment properties. Start with your local banks and credit units.
After that, do what I did and search BP. I found these lenders that will also bundle properties.
Dayton Capital, FOAC bundles 7+, Corevest 5, Colony American bundles 5+, Visio 3 to 7 in a bundle, Conventus, Mofin will bundle.
(Please note that my experience is with refinancing investment properties held in an entity)
1. Pay attention to seasoning requirements. Some lenders will outright not refinance a property if it has been held for too short a period. Others don't have seasoning requirements per se, but will lower LTV, raise rates, etc. based on the amount of time that you have held the property, or properties in this case.
2. Pay attention to how the properties are packaged together, and how the prepayment structure works. If you wish to payoff one of the properties, but not the others for example, then be sure to inquire as to how the other properties will be affected.
Hope this helps,
Yes you can refi into a blanket portfolio loan but what is the reason for a HML for the purchase
@Veronica Haniger are you purchasing a bundle that needs renovation? Why not just take out a long term rental loan now? I am not a huge fan of blanket loans as sometimes they come up with issues later should you want to get rid of one out of the 3. Also for some of them, they do require you to hold properties for longer than 6 months.
If these properties are all bundled together, as mentioned it becomes difficult when you sell one of the properties, or want to pull cash out, etc.
Are you looking to cash out refinance with an LLC? Or with conventional. You would end up having to refinance all of the properties, or at least enough of them to pay back the hard money lender. You can refinance them each into their own loan with conventional when paying off the hard money lender.