Posted by Dave T on February 03, 2011 at 13:08:55:
You are shopping residential mortgage lenders. Almost all of them sell their loans to Fannie/Freddie and have to conform to their underwriting guidelines. With more than 10 financed properties, they will all shoot you down.
Start shopping with the commerical loan officer at your favorite bank. If he/she can’t help you get a referral to someone who can.
How to efficiently shop multiple lenders at once? - Posted by Jason PA
Posted by Jason PA on February 03, 2011 at 08:34:22:
Including my personal residence, I have 20 properties and a total of 18 1st mortgages and no second mortgages.
I am trying to refi 3 of them that have private money loans. They have lower ltv’s, are rented and mostly seasoned. I have been turned down recently at 5 different lenders for what used to be simple straightforward loans.
I have to take them a stack of paperwork 2 inches thick as I have about half in a corporation and half personally owned, so 2 tax returns per year. The lenders are often insisting that I use their schedule of real estate owned and applications. Many want to see copies of all 43 leases, some even insurance declaration pages.
ALL THIS PRELIMINARILY TO GET SHOT DOWN, WHY?
How do mortgage brokers do it, they used to shop me arround to countless lenders all at once and get me some preliminary answers in a week or 2 without needing all this documentation. I don’t mind giviing them 43 leases @14 pages each, but not upfront!
How can I package this to shop it around quicker and easier instead on one at a time?
Re: shop multiple lenders at once? - Posted by BOBCMD
Posted by BOBCMD on February 06, 2011 at 10:17:07:
Get out your local phonebook and write down all the names of small local banks who are savings and loans or thrifts etc., no national banks. Start with the first name on your list and have a list of questions about their lending guidelines for inhouse loans aka portfolio loans. These are the the only sources still lending to someone with as many loans as you have. A smaller regional bank may also consider you as a commercial loan that they will portfolio also.
Get a package of all the info you will need including all your leases, insurance info, lead paint, income statements tax returns, credit report etc. Take it to a copy center and make 10 copies.
After identifying several lenders that will work with someone in your situation set up a meeting and bring your info. At the meeting they want to make sure you dont have 2 heads, have a decent track record and are actually making money (profit). Nothing will be decided at this meeting, its a get to know you info gathering meeting only. Submit your loan package and ask when you can follow up. Mention you are also meeting with X,Y,Z banks to see who has the best fit for you. Remember that the banks only make money if they make you a loan, so they want to loan you money if at all possible.
A big change from the past few years is that they now will lump in all your personal debt when figuring your overall debt ratios this is called your Global debt ratio. It doesnt matter if your trying to refi 1 property or all they will want to see your entire picture. Another issue many now require is 2-6 months reserve of PITA for every property not just the one your trying to refi, including your personal residence. Its a pain in the ass but there is no way around it.