Creative Financing for Purchasing a Portfolio of SFHs
Greetings BP Network:
I am reaching out for suggestions or past experiences financing a portfolio of SHFs. I am looking at purchasing 11 SFHs in Memphis, TN, but wondering if commercial lenders will even underwrite this type of transaction. I figured traditional FHA lending would present a number of issues: delays, costs, and other limitations. I welcome all thoughts.
Best regards,
MJ
Most Popular Reply
A commercial lender may lend if you get a commercial blanket mortgage on the properties. The terms won't be as good as a conventional lender, but it's worth investigating. A better deal would be to find a portfolio lender that will allow you to hold more than 10 properties in your name since they would not have a 10 loan limit under current Fannie Mae guidelines.