Current commerical/portfolio lenders for single family?

Question

Can anyone share some lenders in Ohio that offer portfolio or commercial loans on single family?

I have worked with 3 banks to finance 24 rentals in the past - S&T bank, Northwest savings, Dollar bank. Those banks had their appetite with me due to me maxing out my exposure or me growing too fast for numbers to catch up.

For the past 2 years I have been refinancing through non bank national lender - LendingOne. The rates and closing costs are much worse but it has enabled me to keep going forward.

It would be very helpful if anyone can share!

Nghi Le · Answer

That's impressive.  I usually have to choose between 2-3% cashflow markets where I'm buying things at best 10% off retail price (even after BRRRR), or markets where I can meet the 75% rule but cashflow is 1-1.5%.  I am closing on one this week that's the best of both worlds.  I should be all in for $65k, ARV is $115k, and rents are $1,550.

If you're hitting 75% - 80% cost-to-ARV, you usually can just do a high-leverage HML up front and then a rate-and-term refinance since the HML will usually lend up to 75% of ARV anyway.  Then you won't have to worry about cash-out seasoning requirements and open up more available lending options.

Adam Craig · Answer

Those are really the only deals I do. I normally have at least 25% ARV in equity going into a rental after I refinance - some deals more others less. But I normally buy disaster houses whether I flip or rent. I get the deepest discount and have cheap workers so the worst house give me the best returns.

Buying a house that needs no work might get me decent cash flow but then I am in at market value and I hate market value.

Nghi Le · Answer

Yeah, I get it, man.  I'm in the same boat.  Whenever I need to cash out, conventional loans still seem to be the best choice.  But that's limiting.

But to actually be able to cash out, you usually have to find a pretty good deal (i.e. 70% rule), in which case you're competing with flippers too.  You still finding those deals?  They seem to be needle-in-a-haystack scenarios.

Adam Craig · Answer

Yes those terms are nice but I do the BRRRR and use as little of my own cash as possible so the 75% ARV refi keeps me going.

Nghi Le · Answer

It's on a purchase.  Although on a refi, they'll lend up to 80% LTC (not LTV).  Not the best lender to use if you're planning to do a BRRRR with cash-out.  I just really like their rates.

20% for a bank-type loan is pretty good on an investment property.  Usually I only see less than that with owner-occupied or hard money, but that's a different type of loan.

Adam Craig · Answer

Are those terms on a purchase or refi? Those are nice terms but 20% down is rough and sounds more like a purchase?

Nghi Le · Answer

@Adam Craig

Curious on the preference of a local bank?  As someone that invests in 8 different states, I like a lender that I know can travel with me (so I don't have to start over and look for new financing options each time I expand).  And their terms have been unbeatable so far on anything that I buy (as long as it cashflows), whether it be a single house (or multiple), an apartment, mobile home park, strip mall, etc.  4.6% rate currently on a 5-yr loan with 25-yr am, 20% down, usually around 0.5 - 1pt, and no other fees (they even pay for my appraisals and closing costs).  It is more of a bank-type lender as opposed to Lima One, LendingOne, etc.

Adam Craig · Answer

Sorry maybe I was not clear enough. I can get loans from those types of companies but I am looking for local bank loans. Not national lenders

Brian Ploszay · Answer

Lima One.  CoreVest.