Which investment loan is best to use

Question

I am looking at 4 properties and 8 doors. 2 Duplex and 2 single family with mother in laws suite. Cap rate is 11 percent and its selling for 240k for all properties. 44k down I’ll assume plus other misc expenses. However I’m having trouble finding a loan to get for these properties seeing that they’re 4 different properties. Any advice?

Kevin Romines · Answer

Last time I checked, we have a portfolio lender that will do 3+ properties as 1 loan. But the questions brought up by @Michael Glist would still be relevant.

Luke Rorech · Answer

Speak with multiple lenders and explain the situation and what you're trying/wanting to do.

Michael Glist · Answer

You will likely need to split them up into separate transactions. Most portfolio lenders are looking for 5+ properties to do a portfolio loan.

Are these properties being bought at a discount, do they need work, are you using the BRRRR on these to add value and then refinance them? These things will play a big part in getting financing.

Holly Barrett · Answer

I'm thinking this would be 4 individual conventional mortgages. Is there a downside to doing it that way?

Mario Nunez · Answer

@Sam Horton local credit union doesn’t do commercial real estate so they looked into seperate mortgages and also don’t offer commercial.

The few homes I have are either brrr’d or in the process so not ready or have enough on them to pull portfolio financing. Unless I’m missing something there

Sam Horton · Answer

@Mario Nunez Have you tried local credit unions and or a portfolio loan?

Which investment loan is best to use

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