Portfolio Lending for Real Estate Investors
Use your real estate portfolio to secure financing for additional investment properties.
Real estate investors in need of capital can choose from a variety of commercial real estate options. Among the options are portfolio loans that use an investment property or portfolio of properties to finance a new real estate venture.
We’ll review what sets this loan apart and how it could be beneficial for borrowers who wish to scale their business.
When evaluating loan options, it’s important to consider your timeline, including how soon you’ll need the funds, how long you’ll hold the investment, and what payment structure will best suit your needs.
In order to understand the benefits of a portfolio loan, it’s good to compare it against other funding options. Listed below are some of the most common.
- Commercial Real Estate Loan: With competitive, fixed-rates, investors can use loan proceeds to acquire additional property or seek cash-out opportunities from refinancing. At A+FCU, the max Loan-to-Cost value on a purchase is 80% while the max Loan-to-Value on a cash-out loan is 75%.
- Commercial Equity Line of Credit: Use a property’s equity to establish a revolving line of credit. Conveniently tap into funds to finance acquisition and rehabs, supplement cash flow, or cover unexpected expenses. Pay interest only on the amount borrowed until the loan matures in 2-5 years.
- Portfolio Loan: These loans are largely asset-based. Lenders look at the value of your property or portfolio of properties along with cash flow to determine the loan amount and term. The larger and stronger the portfolio, the larger the amount of capital an investor can access.
What makes portfolio loans unique is that they don’t have limits on the number of properties that can be financed. You can finance multiple single-family residences with 1-4 units or multi-family properties at once, saving you time and money.
With 15-year terms, 5/10-year rate cycles, and 30-year amortizations, A+FCU helps investors minimize monthly payment expenses and maximize cash flow.
Interested in learning more about our portfolio loans or other commercial real estate options?
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