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- March 13, 2024
- Insights
Rental portfolio loans provide a unique financing option for investors who wish to pool their assets instead of financing each one separately. This approach can unlock opportunities that single-asset loans may not be able to provide. Could a rental portfolio loan be the financing option you need to move your business forward?
The Benefits of Rental Portfolio Loans
Our rental portfolio loans are designed to address the needs of investors looking to acquire or refinance stabilized portfolios of rental properties. These loans provide a host of benefits that can enhance investors’ ability to grow and manage their real estate portfolios effectively.
Asset-Based for Greater Flexibility
First and foremost, rental portfolio loans are asset-based, allowing investors to leverage the value of their properties without the stringent requirements often imposed by traditional lenders. By underwriting based on the averages of the collateral pool alongside sponsor experience, financials, and credit requirements, we offer a creative way to access leverage that may not be available through conventional financing.
Fixed Rates for Less Volatility
Fixed-rate financing is another key advantage of rental portfolio loans. With terms ranging from 5 to 10 years and the option for full-term interest-only payments, investors can stabilize their debt service costs, shielding themselves from the interest rate volatility associated with floating-rate products.
Non-Recourse for Greater Security
Our rental portfolio loans are also non-recourse, providing investors with an added layer of security. Unlike conventional financing, which may require personal guarantees and impose restrictions on leverage and loan amounts, our loans limit the lender’s ability to seek recourse to the collateral securing the loan.
Who Should Consider a Rental Portfolio Loan?
Rental portfolio loans offer a flexible financing solution for a wide range of investors. Whether you’re looking to acquire stabilized portfolios, refinance existing loans, or optimize your portfolio management, our rental portfolio loans can provide the financial support you need.
Investors facing the maturity of existing portfolio loans can benefit from refinancing with our rental portfolio loans, potentially securing more favorable terms or cashing out on property appreciation. Additionally, investors looking to acquire new properties can leverage the equity in their existing portfolio by cross-collateralizing them with new purchases under a single loan.
For General Partners (GPs) of funds seeking non-recourse debt, rental portfolio loans offer a tailored financing solution that aligns with the life cycle of the fund. With customizable terms ranging from 5 to 10 years, our loans provide the flexibility needed to support the financing needs of fund projects.
Get in Touch to Learn More About Encore’s Rental Portfolio Loan Options
Our rental portfolio loans feature competitive terms designed to meet the diverse needs of real estate investors:
- Loan amounts ranging from $1M to $100M
- Collateral consisting of 5 to 500+ units
- Up to 75% Loan-to-Value (LTV)
- Fixed-rate options with terms of 5 to 10 years
- 30-year amortization or full-term interest-only payment options
- Non-recourse structure for added security
At Encore Finance, we understand the complexities of real estate investing, and our rental portfolio loans are designed to streamline the financing process, providing investors with the flexibility and support they need to achieve their investment goals. Whether you’re a seasoned investor with a diverse portfolio or a fund looking for tailored financing solutions, we’re here to help you unlock opportunities and maximize returns.
Please reach out to Ryan Harper ([email protected]) to discuss potential loan opportunities.
