Are Portfolio Loans Too Good to Be True?
09. Jul, 2009 
13 Comments
Here’s a question that I got last night from a reader:
I’m dazed and confused, straighten me out here! In your e-mails to me you keep reiterating that portfolio lenders exist out there that will allow the following:
–unlimited properties in my LLC’s.
–Blanket Mortgages.
–unlimited # of investor loans.
–immediate & unseasoned cash-out.My broker tells me it’s just not so, that vesting title in LLC’s and Blanket Mortgages are a thing of the past. Now I have friends achieving some or all of these in states outside of Colorado. My own reading of the rule is, you are still allowed 10 residential properties in your name. But after 4 you must put 25% down and have additional cash reserves. You can circumvent the LLC issue by utilizing a Trust Sandwich. WHATS THE REAL SCOOP!
While I think your Portfolio Loan Blueprint is a must have for survival, I can’t afford to make purchases in which the techniques are out dated—I mean the rules keep changing. Either there are Portfolio Lenders out there or not.
Maybe I should can my broker and hire you—are you still originating loans?
<<sigh>>
Here’s the real scoop… YES. Portfolio loans are out there. This guy even says that he knows people that are getting them. The problem is he’s relying on his broker. OF COURSE the broker is going to try and convince you that these things don’t exist because he CAN’T MAKE ANY MONEY ON THEM.
Brokers get paid two ways – charging you origination fees and getting yield spread premium (YSP) from the lender they sell your loan to. Portfolio lenders do NOT pay YSP to brokers.
And seriously that trust sandwich thing? Really? Isn’t the bottom line to get the loans off of your personal credit report? The very expensive and overrated trust sandwich does not accomplish that.
The bottom line is that if you want portfolio loans YOU have to do some work. You have to find them, contact them and present your deal to them. It’s a business loan and they expect you to act like a business person. That requires some knowledge on your part that the Portfolio Loan Blueprint provides.
Wow!
I’m new to you Susan, as of YESterday and I love what you say and how you say; you seem genuine and what your presenting makes sense; we are fairly new real estate investing company,LLC.
And, yep, we have everything in place for our team and have good early success(6 properties and counting). I hired a company last year to ‘build business credit’ and they more or less petered out as soon as I got D&B,Paydex score solid and 10 net-30 vendor credit accounts; problem is, I need capital and cash lines of credit to keep doing these deals. My wife an I are at capacity with ample back up money, but refuse to overextend ourselves or go any further on personals.
Please answer for me how you can possibly offer so much valuable material at such a low cost?
I get into info overload sometimes trying to figure out which company,guru,program,method to buy into to.
thanks so very much,
Rich Corbin
ItltVentures, LLC
Hi Susan, you are an outstanding professional that mean well and helping others is in your personality, your impeccable reputation is priceless. Thanks, and wish you the best.
John
Thanks John!
I notice there was no mention of a “Business Plan” being included in the “Credibility Kit” documents for the Portfolio Lenders. Is it not needed or required?
Thank You,
Reginald
Nope – just an executive summary.
Hello Susan-
Question? if someone has bad credit, would they qualify for a portfolio loan?
Hi Maria, it depends. With some, no with others it may be ok depending on the situation. I just had a student qualify for a cash out refi on an investment property that was in default with another lender. It’s case by case.
i just bought my fourth condo in hawaii, ($100,000)it was a non warrantabl condo so I had to find a portfolio loan it took 3 weeks talking on phone every day I made about 30 calls and finally found a lender who gave me a 30 fixed at 5.2% I put 20% down now I have a sweet 5yr old 2 bed 2 bath corner unit ocean view condo 7 minute walk to beach and my payment is less than my car……:):) we close tomorrow…..life is good. these loans are hard to find but it can be done I had alot of people tell me it would not happen
dont take no for answer!!!:):)
Show me the money?It all sounds good, first provide the proof and then I will buy your promotional. Get me a loan on a building that is value at 4x its debt. credit is everything even to hard lenders. first it sounds easier then it is, do it I will become your best testimonial. I am tired of the maybe. been through many lenders with no luck. Mike
Hi Mike. Many students have had great success finding and getting funding from portfolio lenders. Follow the steps I’ve outlined and you may, too. This isn’t a pushbuton, “done for you” loan program. Those days are long gone. YOU have to take control.