Profile picture for sdahan

Any serious lender for someone with 25 rental properties (in Texas)?

Would like to know if there is any lender around for refinance / purchases / HELOC which works with serious real estate investors who own over 25 rental properties in TX? Looking for long term financing (no flip) with reasonable interest rates and closing costs.

(All positive cashflow properties, high W-2 income, 740+ credit)
  • October 31 2010 - Dallas
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Answers (4)

Profile picture for Mortgage Brothers
Think you're probably barking up the wrong tree looking for that lender on Zillow.   No lender that underwrites to Fannie/Freddie underwriting guidelines will be able to assist you due to the fact that you own to many financed properties, which in most cases means four financed properties.

You need to find a local community bank or savings bank that does portfolio lending (not originated for sale or securitization) that is comfortable with you, your properties, and your cash flow who is going to hold your financing to term. 
  • October 31 2010
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I agree with Patrick in that if you own 25 properties yourself your better off going to a commercial lender.  I deal with some clients that own their rental properties in corporate names (versus individually) and help them find the best rates via Community or other Local Banking institutions.  

Here is what I'm seeing on that front:

Terms will be closer to 70% LTV max. (appraisal required)
15 Year Amortization
Interest rates around 6.00% for fixed rate closer to mid 5%'s on ARM's (5 Year Fixed & 5/1 in this example)
Need a 750 plus Credit Score
Will look to you indiviually as a personal guarantor in addition to your entity owning the Real Estate.
Much more scrutiny on your personal Balance Sheet / Income Statement than a residential lender and will require much more in 'liquid assets / marketable securities / cash'.

Hope this helps.

Scott Butcher


PS.  If your talking about a bunch of individual investors that own a rental property or two personally, then that's a different ballgame.  Let me know I and can give you feedback seperately for topic.

 
  • November 02 2010
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It depends on how many of those properties have mortgages on them. If you own 25 rental properties but most of them are paid off then there is no problem. Most investors will only do a loan if you have 4 properties or less financed. I do have one investor that will do loans with up to 10 financed properties but the underwriting guidelines are pretty fine on the debt side of the transaction.
  • November 09 2010
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Hi Contact Dale Biaggi Mortgage Professional. He has 40+ years in the business and he will beable to help with all your mortgage needs.
1-831-600-6895

Let him kmow that Susan A Chen from S.A.C. Properties sent you.

Good Luck
Best Regards,
Susan
  • November 09 2010
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