Soar to Success February 2020

Consider packaging your mortgages in a commercial loan. These loans consider your portfolio as a business focusing on rent rolls, debt/equity ratios, and strong leases. Your properties can be positioned individually under one umbrella for a favorable lower rate. If there are any that you are considering selling off, leave them out of the refi as this will save on appraisal fees and additional closing costs later. Choose a banker who will be your partner in building your portfolio. Share your vision and business strategy with them so that they will be able to guide you in structuring the loan. Allow your expectations to help you build a healthy set of questions. Speaking of expectations how do you envision things will look when you are completely done with this refinance. Itisyourtimeto“sellyourselfandyourportfolio.” As you prepare to present your portfolio to the bank review each investment. Consider the purchase price, renovations (which increase value) and current rent rolls. Did you enclose a carport into a garage? Did you add a second bathroom or another bedroom? These things have changed your investment value since you got your first mortgage. The new banker will have no idea unless you paint a clear vision for him/her. As with anything you do in life or business it is about learning to ask the right questions. There are two sides to the business partnership…. yours and your bankers so develop a healthy set of questions. Use other resources such as more seasoned investors who have experience in consolidation. Overall, remember that the final decision is yours. Do your homework, ask questions and then act. Real Estate portfolios grow when you manage expenses and increase earning potential. Successful investors are willing to act. SOAR TO SUCCESS / Business Acceleration Strategies