line of credit against multiple properties

10 Replies

Hi BP experts, I'm looking for ways to get a line of credit that could borrow against multiple properties. I have a small portfolio that has accumulated quite a bit equity by paying them down and appreciation over the years and they are all stable asset with good cash flow. I'm wondering if there are ways to get those equities out. I've talked to bigger banks and they could do refinance one by one which takes time and money and inflexible. I'm looking for flexibility. Could anybody help and give me some comments? Thank you.

Hey Jack, I would recommend going to sit down with a bunch of community banks and credit unions. At least SOME of them will be able to structure what you are looking for

@Jack Yen

What would the loan amounts be? 

It tends to be difficult to find loan amounts under $100k per property for portfolio lenders that I know, but I have heard of some getting loans for over $50k loan amounts with some portfolio lenders. 

Rates are going to be the best with conventional financing and a fixed rate out to 30 years. You can refinance several properties at once with conventional and cash out, but as you mentioned there will be closing costs for each individual property. But, you will be paying in rate, for what you possibly save in closing costs, if you are able to find a lender that will do a blanket loan, which may also require you refinancing again down the road with a balloon payment. 

My suggestion Portfolio loan. Group some or all together and get a loan. I have a client that loans against 4 of his units all the time....pays them off and gets another loan.  I believe he is getting a Line of Credit off them now it works better for him. 

Have you ever tried to qualify for a Line of credit strictly for investment properties. 

It wouldn't be a HELOC per say- (Which most lenders do not offer against investment properties BTW) but it is still an LOC and you use as needed for a property purchase.

Each deal would have to get approved however

Originally posted by @John C. :

Hi @Tarik Turner how do those loans differ from hardmoney loans?

 They are lines of credit offered by certain lenders.  You do not pay interest on funds that aren't being used but it gives you much quicker access to funds than a typical loan would.  Most Lenders who offer that product however want to see your experience as an investor 

Thankyou @Jake Stuttgen  @Jerry Padilla @Michele Wax @Tarik Turner . I'll look into this. It seems this type of product really exist. Is it called portfolio loan? Is it basically lender will take on the first position on the debt of all properties and 2nd position on the equity of the properties for line of credit(LOC)? Thank you guys!

Originally posted by @Jack Yen :

Thankyou @Jake Stuttgen  @Jerry Padilla @Michele Wax @Tarik Turner . I'll look into this. It seems this type of product really exist. Is it called portfolio loan? Is it basically lender will take on the first position on the debt of all properties and 2nd position on the equity of the properties for line of credit(LOC)? Thank you guys!

 Hi Jack, I think “portfolio loan” refers to a loan with a smaller local bank that is kept in house (as part of the bank’s “portfolio”) rather than sold to the large lending programs (eg fannie may, Freddie Mac), giving the bank more flexibility on what they can offer you.  Don’t know much about getting loans across multiple properties, but from this thread and the bp podcast it definitely seems like it can be done! Good luck finding one that works for you!

Hi @Annchen Knodt Thanks for the information! To update, I found a smaller local bank that is willing to do what I described. The rate is a bit higher than the bank that I normally work with but not too bad and gives you a lot of flexibility. They also seem to be more investor-friendly on some terms. At least that's what I experienced so far.