Hard Money Loans
Wisconsin has some great resources for portfolio lenders. Portfolio lenders are commonly local community banks and credit unions. They are called portfolio lenders because they keep their loans in their portfolio. The bank owns and services the loans it originates.
This is very different from traditional lenders because most lenders want to charge fees to originate a loan and then they sell the loan to free up the cash to loan out again. They make their money on loan fees, not interest from the loan. When a lender plans to sell a loan, it must underwrite the loan based on the guidelines of the loan buyer. This restricts what they can offer. Most lenders do not have much flexibility when working with real estate investors, which is why it is important to build relationships with portfolio lenders. Portfolio lenders have much more flexibility because they make the decisions.
Let’s say you have a property that is hard to finance or you have some personal reason a conventional loan will not work. Maybe it is damaged credit or a lack of verifiable income. These are roadblocks that can be overcome with a portfolio lender that makes their own lending decisions.