Hard Money Loans
Minnesota is a great place to be a real estate investor because Minnesota has some great portfolio lenders. Portfolio lenders are typically local banks or credit unions that keep the loans they originated in their portfolio. Since they own the loan and do not plan to sell it, they make their own underwriting decisions. This is a huge advantage for real estate investors because portfolio lenders have a tremendous amount of flexibility.
A portfolio loan is one that is not sold on the secondary market. When you think of the secondary market, think conventional loans like Fannie Mae and Freddie Mac, the two largest buyers of mortgage loans. When a lender plans to sell a loan, they need to underwrite it to the guidelines of the lender they plan to sell it too. If they don’t, the lender won’t buy it. For that reason, most lenders have very little flexibility when it comes to challenging loans.
Maybe you own too many rentals, and your lender cut you off. Maybe you had some negative credit history. Or perhaps you are a strong borrower, but the property needs work or is non-conforming. All of these challenges can be overcome with a good portfolio lender. We have connections with portfolio lenders because we focus on the financing needs of our real estate investor clients. Give us a call and let us see if we can help you with your deal.