~2M portfolio - can anyone do 85% LTV or higher for under 8.5%?

Question

Negotiating on a portfolio of 18 properties (25 doors, almost all SFH. some duplex, one odd one) for ~2M. 1.4+ DSCR, 800+ FICO, plenty of W2 income if needed, borrowing in an LLC. in western Pennsylvania. Anyone working with a lender that will do 85% LTV or higher under 8.5%? if you have a lender that is possibly willing, let me know and I can share the details. Thanks!

Brittany Minocchi · Answer

I can't say for sure without more specific info about the properties, investment experience, occupancy %, etc....but I'm happy to take a look at this for you and see if I can find a lender willing to lend under those parameters, or as close as we can get! You mentioned in another comment that one of the properties is a 5-plex...that's considered commercial, so it would need to be done separately from the 1-4 unit properties. Feel free to reach out!

Jared Rine · Answer

@Karolina Powell..I'm going to add my $0.02 to this. Full disclosure, I'm a mortgage broker out of CA who places this type of $$. There are lenders out there who will do some of what you're looking for, in some capacity, but not all of it. Example - 85% is achievable out there, but only on 1-unit SFR's, and most lenders will typically have loan amount minimums (it seems based on an average from the info provided, even if these were all 1-Unit they would not hit those minimums). I don't claim to know everyone in the space, but 2-4 units are typically maxed at 80%, many lenders at 75% LTV. 85% or higher would be way too risky in this market. However you structure it, and whoever is doing the loan, you should be able to get less than 8.5% interest rate assuming all markers are hit that you mentioned.

I might be able to help you, but I'd have to see more details, and likely would be maxed at 80%. Pricing should be better than 8.5%. Part of the issue as well is the value/price per property is in a lower range, and thus loan amount is smaller, which I know works for these types of portfolios, but it's not necessarily what these lenders WANT to lend on. Hope this helps. PM if you need.

Karolina Powell · Answer

Even if I’m willing to do a separate loan on the odd one (a five plex)? Everything else in the portfolio is 1-4

Scott Wolf · Answer

Yes. If it were all SFH, we could do 80% LTV.

Scott Wolf · Answer

Our rate will be way below 8.5% (most likely under 7%), but based on the property types, we'd be capped at 75% LTV Max.

~2M portfolio - can anyone do 85% LTV or higher for under 8.5%?

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