Refinance a Rental Portfolio
Strengthen Your Financials
When it is time to strengthen the financial condition of your income-producing real estate assets, it is important to consider the refinancing of your rental portfolio. Whether it is necessary to deal with a pending balloon payment coming due, to take advantage of lower market rates, or to cash out equity from your portfolio, Kirksley can find the best portfolio refinancing solution for you.
Refinance of Smaller Real Estate Portfolios
The real estate investors with a single asset or perhaps a few properties in a small portfolio can benefit from a refinance. The specific parameters of the refinance deal will be similar to the initial purchase loan on the non-owner occupied single family homes, 2-4 unit multi-family homes, townhomes, condos, and vacation rentals, e.g.:
a stabilized and rent-ready property, no rehab required
long-term 30-year fully amortized loans or possibly shorter term interest only on single-asset portfolios
fixed or adjustable rates quite variable on cash flow, credit, term, and LTV
loan amounts of $50K to $2M per property and up to $50M on large portfolios with many properties
max LTV as much as 85%
declining pre-pay penalties
minimum credit at a 650 FICO but better terms >700 score
Larger Residential and Commercial Properties in a Rental Portfolio
The bigger real estate investors with ownership in the large residential and commercial real estate properties (large multi-family developments, mixed-use, retail, office, senior living, and light industrial) usually benefit greatly from a portfolio refinance for two main reasons:
pay off a pending balloon payment at the end of an earlier 5/10-year term loan and blend that into a new portfolio loan under similar terms
access a portion of the portfolio equity for cash-out purposes, which may be in the millions of dollars, usually to buy additional properties or to acquire businesses
For the refinance of large and stabilized income-producing commercial real estate properties that need to close very fast, an attractive option is a CMBS conduit loan. All CMBS conduit loans are non-recourse (no personal guarantees) to the investor. They also allow for unrestricted cash-out on refinance. All CMBS conduit loans are fixed rate for 5, 7, or 10-year loan terms with 25/30 year amortization schedules (i.e. a balloon payment at end of term). CMBS conduit loans can also close in as little as 30 days. CMBS conduit loans can also be attractive in the case of poor personal credit scores because the loan is based mainly on the income from the property.