Looking for a loan for our first portfolio
Does anyone have any experience with obtaining portfolio financing for residential properties? Can anyone in BP nation recommend a good lender they have used for portfolio financing?
With our multiple Ground Partners in different parts of the country, our company EAC Group has purchased, rehabbed and rented out multiple properties over the past few months. We are ready to finance our first tranche of properties into a portfolio loan. We have rate sheets from B2R and a broker working with them, but we'd like to see if we can do better. The following is our current holdings we are seeking to refinance:
- 1.Fifteen SFRs, 2 Duplexes, 1 Townhome
- 2.States: NC (7 SFR, 1 Duplex), AL (4 SFR), MO (1 SFR, 1 Duplex), IN (2 SFR), MS (1 SFR), GA (1 Townhome)
- 3.Class B & C
- 4.ARV: 60-70%
- 5.Value: $50-$120k
- 6.Total portfolio: ~$1,250,000
- 7.Occupancy: 80% now, 90%+ within 30 days
- 8.Debt Service Coverage Ratio – 1.35+
We are looking for direct lenders and no brokers. Our desire is to have a loan of minimum 65% LTV which means a loan of around $800K. We would like the loan to be long term preferably 10 to 30 years at a rate competitive with what is currently in the marketplace which is between 6 to 7%.
Our goal is to refinance our current portfolio of properties using an institutional or private money lender, paying off our investors to whom we pay higher interest. We have a solid network of ground partners (who receive cash flow and wholesale fees on all new purchases) we are currently purchasing 3 - 4 homes/month. We are actively interviewing more ground partners and plan to be purchasing 8 – 10 residential properties per month eventually. The process of refinancing will then be repeated with a lender every 3 - 6 months. With this in mind, we are looking to build a long lasting relationship with a lender.
Please contact John Hostetler (make name a link) via BP message or call at 760-519-4152 if you know of a lender who may be interested in this portfolio.