Portfolio loans are increasingly valuable investment opportunities. Not only can you package residential properties into a portfolio, but all types of residential rental assets. This means you can package multifamily, duplex, apartment, and other residential rental properties into one portfolio loan, not just 1-4 unit properties.
The 5 major benefits of using portfolio loans:
1. No capital limitations or property restrictions- With portfolio loan lenders, investors can leverage at their own pace and grow their portfolio exponentially.
2. Asset-Based Lending- For an asset-based portfolio loan, high performing assets can be awarded a higher Loan To Value (LTV) and possibly a reduction in interest rate for assets located in strong markets.
3. Non-Recourse- Traditional banks and most hard money lenders will typically require their loans to be full recourse to the sponsor. Our portfolio loans allow the sponsor to bypass the personal guarantee.
4. High leverage, longer amortization and interest-only options- Combining higher LTV levels with a longer amortization offers borrowers of a portfolio loan more proceeds with a lower monthly payment. This means greater working capital, and provides more options and opportunities for real estate investors to grow their business.
5. Benefits of Consolidation- Having one payment alleviates the added process and stress that can be associated with processing multiple invoices owed to various lending institutions every month.
These benefits allow you to capitalize on limitless properties, without the stress of overwhelming loan management. Packaging properties in non-recourse portfolios allows to you maximize investment in a low risk method. Now, there are endless combinations of properties available to create as a portfolio nationwide. Across states and across rental assets, portfolio loans are possible and promising.
Do you currently own multiple rental properties or apartment buildings?
Are you looking into the possibility of owning and managing multiple rental assets?
Let us at The Sound Mortgage evaluate your potential for a portfolio loan and simplify your loan management so you can spend more time living and less time managing. Request a Consultation or check out our current Investments for more information.