What You Need to Know About Multifamily Rentals & Portfolio Loans

In this episode, Nate Trunfio from Lima One Capital joins us to share essential knowledge about multi-family rentals and portfolio loans. Nate and Michael also share some important lessons learned throughout their careers. If you are looking to transition from single family to multi-family or want to bundle your loans into a portfolio loan this episode is for you. --- Transcript   Michael: Hey everybody, welcome to another episode of The Remote Real Estate Investor. I'm Michael Albaum and today I'm joined again by Nate Trunfio with Lima One Capital. And Nate and I are going to be talking today about making the jump from single family to multifamily and some things to be aware of, as well as portfolio loans and a lot of different things to consider when to use them, and maybe when to avoid them. So let's get into it.   Nate, welcome back to the podcast, man. super happy to have you back on.   Nate: Man. I don't know how I made the cut for another one. But man, I'm just thankful to be here. So thank you.   Michael: So I thought today, we could pick up the conversation. We had you on the podcast last time and we started talking about portfolio loans. And then we also started to dovetail into talking about multifamily. So we'd love to start with talking about portfolio and then we'll jump into multifamily Sounds good?   Nate: Absolutely.   Michael: Awesome. So I don't remember if we covered it on the last episode, but maybe for those folks who didn't catch it, what is a portfolio loan? And who might be a good candidate to use them? I think there's a lot of misnomers around the name itself. So give us the quick and dirty about what it is.   Nate: Absolutely. Yeah, so just as a reminder, Nate with Lima, one capital providing financing solutions for all types of investors with a residential focus that's both single family and multifamily following the residential category, one of our favorite products is very large, a growing appetite for is portfolio loans.   And so essentially, a portfolio loan is in our world, at least anything that's more than one property. Alright, there's different functions of loans that are implemented when you have more than one asset, because it just things get a little complicated, right? What happens if one deal gets paid off, and there's were two in the loan, which we can certainly talk on, but our portfolio loans not only addressed the need for smaller size portfolios, you know, 2-5-10, but all the way up 50 and 100 plus, so there's a couple different variations. But the bottom line is if you want consistent terms, on all assets baked into one loan, that's when you're going to look for a portfolio. If you have one investment strategy for all of your assets, that's when you want to look at a portfolio. When you say when wouldn't I look for a portfolio and I own multiple assets, it's sort of back to what I just said, of, if you have numerous investment strategies, like you're very confident that you're going to want to take some assets to market soon, you might want to reconsider putting those into a portfolio. But the bottom line is if you have an investment strategy, and you own multiple assets, in all of the assets, that you're looking to finance have that same strategy, that's when you're going to go out and get a portfolio loan, it could be on the acquisition ends, you can buy a bulk property portfolio with a loan, you can take properties that are free and clear and combine them into a loan. You can take ones with existing debt and trying to get better terms on it, especially with nowadays low rates. Or you could have good rates on your existing loans on assets and want to recapitalize or refinance and take cash out. So a lot of different options. But the bottom line is multiple properties, but with a more singular investment strategy is when in a portfolio loan is going to be of good use to you.   Michael: Okay, awesome. And so I know that the loan structure starts to change when you mak