Portfolio Lender question

[William Chrisman]

I understand that portfolio lenders keep the loan "in house" and because of that you don't have to worry about Freddie or Fannie quantity restrictions. 

What are additional advantages and disadvantages to Portfolio Lenders?

[Matt Lavinder]

Portfolio lenders can use discretion, so they can offer more custom solutions and products.   For example, they can do construction loans and cash out refis where they can loan up to 85%of the after repair value (arv)of the property.  This allows you to minimize your out of pocket investment.   Portfolio lenders can also be a valuable source of advice and guidance as they are typically looking for a long term relationship with quality people.  So, they have a vested interest in your long term success and the good ones understand business math as well as anyone.  Establishing good relationships with a few portfolio lenders will allow you to scale your business to another level.  But, you need to present yourself as credible and knowing what you are doing.  Ultimately, portfolio lenders are betting on you as much as your property.   If you are starting out, don't give up if you get rejected by one local bank.  They are all different with different risk tolerances.  Find one that believes in you and what you are doing.  Imo, these are the most important relationships you can establish.