Skip to content

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

8
Posts
5
Votes
Travis Mullen
  • Lender
  • CA & AZ
5
Votes |
8
Posts

Financing an 8 SFR Portfolio in Iowa

Travis Mullen
  • Lender
  • CA & AZ
Posted

Hi BP Community,

I have been offered an offmarket deal from a landlord and property manager with over 30 doors in IA. He brought me 8 SFR's he'd like to sell as a package and continue to manage for $50/mo per house. The taxes are $862/mo, and the insurance is $350/mo. The Gross rents are $5,990. The asking price is $550,000 and the value of the properties is around that or a little higher. They're all turn-key, already rented, no obvious deferred maintenance. These are quality.

My question is, should I pass because I'm not in a cash position to buy it, or should I continue to be creative and try to find a way.  My first dead end was a portfolio lender in that local market saying they dont allow a 2nd lienholder, even though the seller will carry whatever amount I need, but he does want to cash out at least half. 

I'm curious if any private lenders will lend around 6% or 7% for longer terms, like 30 year term with 10 year balloons.  If that exists, how do I find it?  I have done what BP authors have said and have networked a lot at meet ups.  Is there anywhere online that aggregates private investors and allows you to search by criteria?   Also, do these type of lenders always care if they record a 2nd lien? 

Any help to move this forward would be much appreciated.  


Thank you!

Loading replies...