Approaching 10 FHA Loans, Now what?

Question

I currently have 7 FHA loans backing long term rentals and will be looking at topping the max of 10 within the next 3-4 months. I don't want to stop my real estate investing business, don't want to get into wholesaling as a major component of my business just want to continue to build passive income.

I really would like the insight of others that have come to this transition period and what has been successful. Is Portfolio Lending one of the only options?

I really would like the insight of others that have come to this transition period and what has been successful.  Is Portfolio Lending one of the only options?

Jeff Betschart · Answer

@Elizabeth Colegrove

@Tim Farrell

Did either of you get into the Portfolio Loans and how has it worked out for you. I am in the same spot right now and need to figure out how to move forward.

Regards

Jeff

Elizabeth Colegrove · Answer

Tim we will be in your position hopefully soon. We plan on doing portfolio loans and paying off the cheap loans that make sense. If you could post your experience on finding a portffkio lender when your done. That would be awesome!

Tim Farrell · Answer

Jon..

Thank you for your time and knowledge, it is much appreciated..

Jon Holdman · Answer

@Tim Farrell I moved this into the Marketplace so  you can get lender names.  The one I spoke with was 1st Bank (www.efirstbank.com).  They're here in Denver, but also have banks in Palm Desert CA and Phoenix.  I spoke with them about a month ago and they were still doing both small residential and commercial RE loans.

Tim Farrell · Answer

Jon

Thanks for the conformation... BTW do you know of any Portfolio Lends that would lend with property located in different states?

Jon Holdman · Answer

I think you mean 10 convention (i.e., Fannie/Freddie) loans rather than 10 FHA loans.  Portfolio loans are your best option, IMHO.  The interest rate will be about the same as conventional, make just slightly higher.  Down payments will also be comparable.  The downside is the term is going to be shorter.  15 year fixed or an ARM or balloon with a longer amortization period, from the one I spoke with recently.

Private money is another option.   Savvy lenders aren't going to give you a 5% 30 year fixed, though.  So, you're looking at the same shorter terms, ARMs or balloons of a portfolio and a higher rate.