Best Way to Finance Portfolio of Properties

6 Replies

I've been purchasing SFH for cash over the past couple of years and now have a 10+ property portfolio and growing.

What are some of the ways I could get loans against the portfolio of properties? I know I could do a cash out refi on individual properties, but that process seems cumbersome and not particularly scalable.

I'm looking for something along the lines of a bank valuing the portfolio of properties and underwriting a single loan or line of credit against all the properties.

All the properties are held in an LLC if that matters. Thanks!

Hi @Paul C.

A local portfolio lender (community bank, etc) may be able to offer you a blanket commercial loan. When reaching out, be sure to speak with a commercial lender rather than someone in the mortgage department.

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Small local banks that hold loans for their own portfolio would be your best bet.

I'm refinancing 5 duplexes with one right now.

I think what you're asking for is a "Blanket Loan". You can search that on BP as we've made several posts about them.

RE is unique unlike other asset widgets, it must be valued individually which is cumbersome in financing multiple units can get expensive so after the fact you don't want to be in a position to refinance.

Watch out for the deed of release requirements for any one property as well.

Any type of program that blankets a group of marketable assets will have issues with releases of security interests so ensure that any release required meets your timing needs with respect to equity held and collateral amounts pledged. :)

Paul,

Either call around your local banks as @Zoran said or there are a couple lenders that are known to do those types of loans nationwide. Local banks' cost is likely going to be less expensive as I've heard of some just taking BPO value(s) rather than full appraisals and things like that in the due diligence process. I'm assuming these are cash flowing tenanted properties.

Just my .02

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