Author Topic: financing options - experienced borrower advice?  (Read 198 times)

ryanht13

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financing options - experienced borrower advice?
« on: November 28, 2017, 11:09:56 AM »
I'm trying to grow my real estate portfolio for passive income. I am at a crossroads, but hopefully someone can help.

I own two properties in my name (conventional mortgages). My wife owns none. Our original plan was to acquire as many properties separately as we could (because Fannie and Freddie don't like to see a bunch of mortgages). We figured we could each get 4 properties / mortgages (8 total). From there, if we wanted to build out our business, we would go to a portfolio lender / small bank and get a commercial loan, or get private lending.

But, someone has offered me private financing and / or partnership on future deals.
It would probably be something like $200-$250k / 20yr term @ 5-5.5%.

I'm worried about taking it this early, because then if I try to go conventional in the future, I'll have to disclose that private loan. To me, it would seem the best way is to get as many conventional loans as possible, then start pursuing private or portfolio loans.

Any thoughts?

Kayad

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Re: financing options - experienced borrower advice?
« Reply #1 on: November 28, 2017, 10:33:31 PM »
Yep, probably.  I think you can get better terms with conventional lender (or at least, that was true as of this June), so I don't know why you would have to use this yet.

zephyr911

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Re: financing options - experienced borrower advice?
« Reply #2 on: November 29, 2017, 12:34:27 PM »
Can you put me in touch with them? :)
Semi-FIREd December 2017, part-time entrepreneur, lover of puppies and saltwater.