Five buildings, five lenders, five maturity dates. Or one loan across the portfolio, with one payment and one closing. Here's how to decide which fits.
Owners who built their portfolio one small building at a time usually end up with a patchwork: a bank loan here, a seller note there, different maturities and different terms. Pulling it together under one loan means one payment and one closing, and the equity across all the buildings can come out at once.
One loan isn't always better, though. Separate loans let you sell a building without touching the rest, and a weak building doesn't drag down the strong ones. We'll show you both structures side by side, including release provisions that let you sell a building out of a blanket loan on select structures.
On portfolios of small apartment buildings in one market, loan amounts typically range from $500,000 to $30 million. Maximum LTV is typically 75%.
These are typical ranges, not a quote. Your rate and loan amount depend on the properties, your credit, and the market.
These are typical terms. Yours depend on the buildings, the market, and the structure you choose.
Different lenders, terms, and maturity dates across the portfolio.
No single building has enough equity, but together they do.
Several properties within a short drive of each other.
A fourplex, an 8 unit, and a 24 unit in the same market.
Several buildings in one purchase.
Release provisions let one building go without refinancing the rest.
The buildings: Five small apartment buildings totaling 64 units in one metro, worth about $6.8 million combined, with $3.1 million owed across four different loans.
The problem: Four lenders, four maturity dates, and no single building with enough equity to fund the next purchase.
The loan: One loan across the portfolio at about 70% of combined value: roughly $4.76 million.
The result: Four loans paid off, one payment going forward, and about $1.5 million back to the owner before closing costs.
Illustrative figures, rounded. Your terms depend on the building, the market, and the loan.
For owners who built a portfolio one building at a time and want it to work like one.
Consolidate loans, lenders, and maturity dates.
Take cash out across the whole portfolio at once.
Release provisions or separate loans keep each building sellable.
Finance a portfolio purchase in one closing.
What you own, what's owed on it, and what you want the loan to do. A rent roll and T-12 are all it takes to start.
The loan amount, the structure, and the cash to or from you at closing, before you pay for an appraisal.
Appraisal, environmental, title, and insurance get ordered and kept on schedule. You always know what's left before closing.
Loan documents signed, the old loan paid off, and the rest wired to you.
Send a rent roll for each building and a list of current loans, and we'll come back with terms.
