CalculateRealEstateROI

Financing

When should I use a portfolio lender?

When conventional pricing caps out (loan #11+) or you need a custom underwriting workaround.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

When conventional pricing caps out (loan #11+) or you need a custom underwriting workaround.

Expanded explanation

Community banks and credit unions hold loans on balance sheet, so they can offer custom terms. Trade-off: typically 5–20-year terms with balloon rather than 30-year fixed.

Examples

  • Local bank financing 5 SFRs under one note at 7.5%, 25-year amort, 5-year balloon.

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