Line of credit on a portfolio?
I’ve got a good friend that approached me recently asking for help finding some lending, so I’m bringing it to my BP Braintrust for networking help. My friend is a very successful custom home builder and investor in NC, he has a large portfolio of rental properties that he owns free and clear, and has had a line of credit on the portfolio with unbelievable terms for 10 years+. Wells Fargo was giving him a $5 million line of credit, interest of 0.75% below Prime. He used this to fund various builds and projects through the years and always paid it back. Last week, they reached out to him and let him know they would be Sunsetting that product and it was going away, with no other clear alternative. He went and met with Corning Credit union, but they are capped at like $2 million. His plan is to just have the equivalent of cash on hand so that we can do some deals together over the next few years, especially as there is a looming recession on the horizon, his belief is that cash will be King. his portfolio has appreciated quite a bit, and he’s looking for a lender that can do a $5-10 million line of credit that’s secured against a large portfolio that is free and clear and cash flows very well. Refinancing into a portfolio loan is not ideal, we’re specifically looking for a line of credit that can be invested and paid back, and invested again, he has some pretty big goals and is extremely talented. Anyone have any strong leads or products to offer?