I'm new to portfolio lending and have a borrower with 8 SFR rentals who wants to consolidate into a blanket loan. I've never done one of these. What should I know before I start shopping this deal?
Got a borrower with 620 FICO but: - 15 years of real estate investing experience - 12 successful flips in the last 3 years - 35% down payment - Property in a strong market (Denver) - Clean title, no recent lates The FICO is dragging them down but the experience and equity position are excellent. How do you present this to lenders? Any lenders who weight experience over FICO?
I have a borrower who owns 4 free-and-clear properties and wants to pull cash out to fund a new acquisition. One option is cross-collateralizing all 4 to get a larger loan. Another is doing individual cash-out refis on 2-3 of them. What are the pros and cons of cross-collateralization and when does it make sense?
I keep hearing about mezzanine financing as a way to fill the gap between senior debt and equity. Has anyone actually structured a deal with mezz? What types of deals does it work for and where do you find mezz lenders?
Had a borrower this week who wants to buy a $800k property but only has 20% down ($160k). The LTV would be 80% which most bridge lenders won't touch. However, they have a free-and-clear rental property worth $350k. I'm exploring cross-collateralization — using both properties as collateral to bring the blended LTV down to something workable. Has anyone structured deals this way? What are the pitfalls? Which lenders are open to it?