Rental Portfolio Loans

These niche products allow our investors quick access to cross-collateralized funding with limited liability and documentation requirements

Laissez-Faire capital partners provides rental portfolio options as follows…

CRE Rental Portfolio	Parameters
Loan Type	Purchase Refinance Cash-Out Refinance (Bridge & Term Financing Options Avail.)
Asset Type	Single Family Multifamily Townhomes Condominiums Independent Living/Mixed Use (Majority Residential)
Loan Size	$500M-$100MM
Loan Term	5yr, 7yr, 10yr Options Available
Interest Rate	Bridge - 1 Month SOFR + 3.75%-4.5% Term- Swaps + 2.5%-3.65% (rates vary with loan size, LTV, DSCR and daily market indexes)
LTC (Loan to Cost)	80% Max Construction Financing for a Build-to-Rent Communities
LTV (Loan to Value)	70%-80% (Deal Specific)
Closing Timeline	Approx. 30 Days
Amortization	30yr and Interest Only options available
Minimum FICO	680
Document Requirements	No Tax Returns Necessary
Residency	US Citizenship / We work with Foreign Nationals
Prepayment Penalty	Yield Maintenance and Stepdown prepay options available
Lending Footprint	Nationwide
Liability	Recourse / Non-Recourse options w/ standard carve outs, completion guarantee, environmental indemnity

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What is a Rental Portfolio Loan?

With a portfolio loan, investors can roll up all of their rental assets into a single loan with one monthly payment and a single point of contact. Having one payment alleviates the added stress that can be associated with processing multiple invoices owed to various lending institutions every month.

Purpose

Rates might be slightly higher than individual mortgages due to the increased risk associated with multiple properties.
Terms can vary, but rental portfolio loans might have durations of 5 to 30 years, with both fixed and variable rate options available.

Features

Consolidation: For investors who already own multiple rental properties with individual mortgages, a rental portfolio loan can consolidate these into one loan with a single monthly payment.
Acquisition: For those looking to expand their portfolio by purchasing multiple properties at once, this loan offers the ability to do so without obtaining individual mortgages for each property.
Single Mortgage, Multiple Properties: All properties are bundled under one mortgage, but they remain individual parcels. This means properties can be sold off individually without affecting the rest.
Release Clause: One significant feature of many rental portfolio loans is the release clause. This allows investors to sell individual properties from the portfolio and use the proceeds to “release” that specific property from the mortgage. The remaining loan balance is then adjusted accordingly.

Interest Rates & Fees

Rates might be slightly higher than individual mortgages due to the increased risk associated with multiple properties.
Terms can vary, but rental portfolio loans might have durations of 5 to 30 years, with both fixed and variable rate options available.

Loan-to-Value (LTV)

Lenders will usually offer a combined Loan-to-Value ratio for the entire portfolio. For rental portfolio loans, LTV ratios might be slightly lower than single-property loans, given the complexity and perceived risk of managing multiple properties.

Benefits

Efficiency: Managing one loan versus multiple mortgages can simplify financial management and paperwork.
Flexibility: It provides a way to scale a rental business without taking on multiple individual mortgages.
Potentially Lower Costs: By consolidating multiple mortgages into one, investors might save on cumulative fees or even get a better overall interest rate.

Considerations

Cross-collateralization: Since all properties serve as collateral for the entire loan, a significant decline in the value of one property can impact the equity position of the whole portfolio.
Diversification: If all properties are in the same area, there’s increased risk if that specific market faces a downturn. This risk is inherent in real estate investing but becomes more pronounced when multiple properties in the same market are tied together under one loan.

Summary

In essence, a CRE Non-QM loan provides an alternative route to financing for borrowers who might not fit the mold of traditional lending criteria. While they come with their own set of challenges and costs, they can be an essential tool for many investors or businesses in the commercial real estate realm. As always, it’s essential for potential borrowers to thoroughly understand the terms and consult with financial professionals before committing.

BRIDGE LOANS

$500M-$100MM

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CONSTRUCTION LOANS

$500M-$100MM

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CONVENTIONAL COMMERCIAL LOANS

$500M-100MM+

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RENTAL PORTFOLIO LOANS

$500M-100MM

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NON-QM LOANS

$150M-$5MM

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