Good afternoon all. I am more or less done adding to my portfolio and currently have 27 loans on a total of 42 doors. All of these loans are at around 4.85% interest and on 1, 3 and 5 year reset loans with 10 year balloons and amortized over 20 years. I am currently sitting at around 50% loan to value and owe around $1,000,000 combined. Is there a cheap or easy way to get all of this debt consolidated together and on a lower fixed interest rate? Ideally I would just refi it all back out to a 20 year note and reap the benefit of higher cash flow. What sort of hoops would I need to jump though to do so? I appreciate any and all feed back, thanks!
Based on the numbers provided, it sounds like a majority of your properties are under $100k in value. Is this the case? If so, this will limit your lending options greatly.
I have a list of lenders that offer 30-year fixed in the low 5 to mid 5's. But we need property values of $115k+. I can't say anymore because I don't want to break BP's soliciting rules, but hopefully this helps.
Are all of your rentals in the same city/area? If so, you can look at refinancing them into one note. There are pros and cons to that. Pros are you have one note to pay and you have a single rate to manage for a package of properties. The cons here are you are pretty much stuck with these properties for the long-term. If you want to pay one property off, you'd have to refinance the package and pull that one property out. Also, if you wanted to sell one or 2, you have the same issue of having to refi out the properties you want to sell. It all depends on what your long-term strategy looks like... there are more options, but that's just another option to consider.
Yes, this is what I would like to do exactly. I currently have 3 separate entities setup for these properties. If I could end up with 3 notes to pay instead of the 27 that would be a win. I would of course need to get a lower Interest rate and my loans pushed back out to 20 years with that as well however.