Best Real Estate Portfolio Lenders for Financing Investment Properties

  • Thanks for the article, very helplful information. FYI your EBook link is 404

  • Anyone know of a good portfolio lender in Atlanta, GA area?

    • branden Harshaw says:

      or Kansas lol

  • Since we lend off of investments, not deposits like the bank, it allows us to be much more aggressive with with investment properties (5+ Units,retail, office) Our terms generally look like this:
    250k-2.5mm loan amounts
    70% LTV/LTC
    Rates starting 6.99
    25-30 year fully amortizing (NO Balloon)
    650+ FICO

    *NO borrower income verification (tax return, pfs, etc)
    Only need rent roll and tri merge credit report
    [email protected]

  • Great blog! Thanks for the information

  • Thanks for all the information, I just found a portfolio lender!!

  • Mark,
    I’m starting to acquire more rental property and of course lenders backed by Fannie/Freddie want 75% LTV on multi-units. I don’t inherently have a problem with this but being that I’m in this for the cash flow, I would prefer to have less equity, which increases my cash-on-cash returns, and increases my reserves to weather any storm. Can you give me a portfolio lender referral? Let me know. Thanks, Dave

  • I’m wondering if you have set up an LLC or an s-corp for liability purposes, and why you chose that form? Curious also about how you’re taxed.

    • I have LLCs for my rentals. That is what my lawyer suggested. Rentals are taxed as earned income, but depreciation really helps.

      • One LLC or a certain amount of properties per LLC?

  • Pecola Jenkins says:

    Hi Mark, can i get a portfolio lender referral in the New Jersey/New York Area if you know of any thanks


    can you find me a portfolio lender in the san jose bay area or any in san Francisco area of the west coast? one who does not conform with Freddie n fannie?

    HERMAN DE GUZMAN 408-219-2374

    • Hi Herman,I do not know many portfolio lenders around the US.

  • Can anyone recommend a portfolio lender in New Jersey?

  • Hi Mark, if Id like to buy 4 properties this year (my first 4) and I am not a US resident – what type of lender do you suggest? I plan to initially focus on turnkey properties with the intention of buying 3-4 a year. I have about 300k cash, but would ideally put in about 25% on each of the 4 80-100k homes (about 100k + cost for fees). Thanks

  • Hello Mark,
    Isn’t it risky to have all your accounts with one bank? It’s only insured upto $250k per social security number. I suppose as a couple, that adds up to 500k, more than most people have in cash.
    I will shoot you an email regarding your portfolio lender. We’re in CO and have 7 mortgaged properties, but none of the regular lenders lend to LLCs. And only two banks, Wells Fargo and Stearns, will borrow to individuals with more than 4mortgages, 25% down. We always wondered how other real estate investors do it, having their properties in LLCs without paying the entire property off.

    • Mark Ferguson says:

      It may be a little risky, but it is rare I have that much cash in my accounts.

  • Excellent info–very helpful.. I am coming up against the bank limit of 4 mortgages and need away around it to keep buying more.

    Will be following your blog for more tips!

    • Mark Ferguson says:

      Great to hear James!

  • Awesome information!

  • Hopefully this comment section is still active. When you open a portfolio loan, does that mean you have to transfer all your existing mortgages into it? Or can you just start anew?

    Also, how much down payment typically is required?

    • Mark Ferguson says:

      You can start anew. Usually 20 % down for investments.

  • Daniel Maclone says:

    Great info. Tough to get answers on this stuff. I am a builder and started building rental property with great equity, but I am going on my sixth one now and don’t want to get stuck with all my cash in it. I need to find a portfolio lender in Mass. Please let me know if you know of any. Thanks.

    • Mark Ferguson says:

      I don’t off hand. But you should be able to find one.

    • Jimmy Lopez says:

      I also live in MA were you able to find a portfolio lwndoes?

  • Hi Mark assuming 30% down and 30yr fixed term, what is a good range for portfolio loan rates in your experience? We are looking to purchase with a co borrower in the family. Both of us have more than 10 financed properties

    • Mark Ferguson says:

      first, it might be tough finding a portfolio lender who will do a 30 year fixed. You might find a 25 year fixed or ARM with 30 year amortization. My 5 year arms with 30 year amort are 4.5 percent right now. 30 year fixed could probably be had, but at 6 or 7

  • Hi Mark,
    Thanks for all the great info! Looks like you’ve really found a helpful resource for your investment practices.
    What state are you located in? Does your portfolio lender only offer loans in your local area? Are you willing to share the name of your portfolio lender?
    Thanks so much!

    • Mark Ferguson says:

      I am in colorado and they do only loan in colorado

  • Is a 10% down possible with a Portfolio lender? and can they be reasoned or they have fixed terms?

    • Mark Ferguson says:

      Usually not. Most will want at least 20 % down

  • Thanks for the guide on finding a portfolio lender. Base on this article, I can see the benefit of having a portfolio lender. It is beneficial especially to people who want to own multiple properties. Thanks for a very informational post.

  • Before you HAD to use a portfolio lender, how did you get your loans? Did you do 30 year fixed?

    For us just starting out, should we start to use ARMs with portfolio lenders or do the 30 year fixed until we are not allowed anymore?

  • Question: I own 2/3 of two different multifamily properties.

    Unpaid Principal Balance:$220,981.46
    Original Principal Balance:$284,900.00
    Escrow Balance:$1,694.79
    Length of the Loan (Months):360OriginationDate:02/18/2003
    Maturity Date:03/01/2033Interest Rate (%):7

    Unpaid Principal Balance:$220,981.46Original Principal Balance:$284,900.00Escrow Balance:$1,694.79Length of the Loan (Months):360Origination Date:02/18/2003Maturity Date:03/01/2033Interest Rate (%):7

    We recently added by father (1/3) owner to the deed in Common. He wants me to refi them with his portfolio lender at 4.5% for 30 more years….
    I am concerned about paying too much interest…. He wants the lower payment which would give us roughly $1,495 more in our pocket each month…
    Is this a good idea? Why? Why not?

    Should i be concerned about him adding them to his portfolio loan? What will that mean for me?
    Thank you!

    • Mark Ferguson says:

      I think that is a great idea. Much lower interest rate. You will probably pay less interest and have more money in your pocket. Portfolio lender is just the type of lender.

      • the portfolio is not mine… it’s my father’s. he owns other properties and wants to add the two properties we own together to HiS portfolio to get the better rate…
        how does that effect me?

        if we refi and get the lower rate we get about 1500 more a month.. but at what cost?
        He doesn’t seem to care since he is 73.. and figures he won’t pay it anyway…

        • Mark Ferguson says:

          Figure out the interest you pay in both scenarios, with the rate 3 percent less it will make a huge difference.

  • Jag Persaud says:

    I am a Canadian and I am looking for a portfolio lender to finance properties in Florida. Can you help me

  • Clara Zavala says:

    Hi Mark, why do you concentrate on buying single family houses instead of 2 family?

  • Mark – This is one of the most comprehensive articles that I’ve found on portfolio lenders to date. More importantly, you actually talk about terms and rates which very few people do! THANK YOU for that. I don’t think that the concept of a portfolio loan is tough to grasp, but man finding out what an idea of terms is like looking for a needle in a haystack.

    • Mark Ferguson says:

      I am glad it helped!

  • Mark, great article as I’m recently up against my debt to inome ratio with properties. I plan to buy my next home and live in it in a few years but wantd to start planning and researching early. Let me say I appreciate your article and that you seem to genuinely care and answer posts. My question is, I own 2 rentals and live in my third property. In a few years, I plan to rent the current one I live in and purchase a 4th to live in. It seems like the banks will not loan me any more even though my rentals are at worst, break even. Do you know how a portfolio lender would prefer to handle this, i.e. just loan on my 3 rentals or be the debtor on my fourth as well? Thanks in advance.

    • Mark Ferguson says:

      All the banks handle it differently but I bet they would be willing to finance all four.

      • Ty Richey says:

        Hi Mark… I have a 14,000 sf commercial office building under contract that currently has a long term lessee for 3,000 sf that makes the property have positive cash flow and remaining 13,000+ of available space that current Owner refuses to lease out while building is for sale, will lease quickly for $18-$24 per yr. adding more than $275,000 in positive yearly cash flow. I am looking for a partner to come in with cash or qualify and buy in to a 60/40 JV with me for $400,000 … Building appraises for more than $1.3M

        • Mark Ferguson says:

          Hey Ty, I personally I am not investing with partners right now.