Investor · Butler, NJ · Member since 2016 · 5 posts · 1 vote
I have 3 small deals that I'm trying to refi into a portfolio loan. 2 of them are already at 70 LTV. however they are all in the $100k range in price. Wanted to refi all together. My 3rd deal is 35% LTV. I would pick up some cash and use the proceeds to buy another property. But the fees on a $100k property start to eat into the cash out. So i have been trying to get them in a 3 house portfolio, but struggling to get that done. Anyone have any thoughts?
Rental Property Investor · Washington Township, NJ · Member since 2015 · 1k+ posts · 976 votes
8y
@Christopher Ressa - What seems to be the problem? With the equity you have you shouldn't have any issues getting a blanket/portfolio loan. Either that or find a lender that will let you keep the separate loans (rather than paying for additional closing costs) and cross collateralize them on a line of credit. Seems like the goal is to tap the equity so you can buy more so this last option seems pretty good to me.
Investor · TX · Member since 2015 · 393 posts · 290 votes
8y
I was trying to do the same thing recently. The rates and terms on a portfolio loan were terrible compared to doing 3 separate cashout refinances. I'm in the middle of doing those now, the fees aren't bad, the interest rate is 5.49% 30 year fixed. The portfolio loan was 8% for the same.
Investor · Butler, NJ · Member since 2016 · 5 posts · 1 vote
8y
@Roger S. I just dont have enough equity and low interest rates on the other 2. In order to cashout on those Id need to do get a really high ltv. Thanks for the feedback.
@James Masotti Thanks. Haven’t tried the 2nd option you recommend. Biggest challenge on portfolio side has been having less than 5.
Number of properties shouldn't be an issue. I did my first portfolio loan with only 2 properties. Same rate and term as the next one I did with 5 properties. They were at 75% LTV for the complete portfolio.
I was trying to do the same thing recently. The rates and terms on a portfolio loan were terrible compared to doing 3 separate cashout refinances. I'm in the middle of doing those now, the fees aren't bad, the interest rate is 5.49% 30 year fixed. The portfolio loan was 8% for the same.
Were you talking to small community lenders and/or credit unions? I've never heard of these lenders jacking up a rate that much. I'm paying 5.25% on my latest portfolio loan.