Are you interested in accelerating the growth of your portfolio? What if there was a way to pick up a group of properties, rather than slowly accumulating properties one by one? I have excellent news for you; there is a way! It’s done through securing a portfolio loan.
Today on the podcast, Natali and I are discussing how to expedite the growth of your real estate business through portfolio loans. We recently went through this process, and want to share our experience with you. It’s all here on episode 58 of Investing in Real Estate!
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In residential real estate, a portfolio loan is a means for investors to acquire multiple properties, simultaneously. Portfolio loans can be secured through either financial institutions or private lenders. The amount of the loan is based on the value of the collective properties.
A portfolio loan varies vastly from a primary home mortgage; they’re two totally different products. You might use the same terminology, like interest rate or pre-payment penalty, but that’s where the similarities end. The best way to approach a portfolio loan is to remember that the terms will be much different than other loans you’ve encountered.
If you’re expecting an interest rate of three to four percent, because of your experience with a mortgage, you’ll be sorely disappointed. A portfolio lender will typically lend at a rate between six and twelve percent. The rate varies dependent on the down payment.
On today’s show, Natali and I are sharing the details of our portfolio loan. We'll talk about interest rates, down payments, and what questions we asked to find the right deal for our circumstances. We’re also elaborating on the research we did throughout the process, and the lessons we learned along the way.
We'll also talk about calculating cash flow from portfolio loan properties, and how you can decide if a portfolio loan is right for you. We're an open book on this topic, and want to share our experience. If you’re ready to take your real estate investing business to the next level, don’t miss this episode of Investing in Real Estate!
If you’re ready to begin building a passive income through rental real estate, book a FREE call with my team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- What questions should you ask when shopping for a portfolio loan?
- What is a pre-payment penalty sliding scale?
- Why do most reputable portfolio lenders exclusively lend to LLCs?
- Why is insurance more expensive when properties are attained through a portfolio loan?
- And much more about real estate investing!