What is AM Portfolio+?
The America Mortgages’ Portfolio+ program is a streamlined debt service coverage mortgage loan over multiple residential investment properties. It is one loan with blanket collateral over a minimum of 2 properties and up to 100+. Similar to our AMIRM program announced last week, AM Portfolio+ does not require any personal income documents from the borrower; the underwriting is solely based on the appraised value of the properties and the cash flow generated from the lease agreements.
Residential real estate has had an incredible run in both price appreciation and rent appreciation in recent history. We have heard from several clients over the last few months how great their rental portfolio in the U.S. has done in both areas. Though this is very true, there is one point that always stands out – where has your ROE gone?
Return on Equity (ROE) is a common measurement used by real estate investors to determine how strong of an investment their properties are. With the strong price appreciation over the last several years, our clients have seen massive growth in their portfolio values. Though rental rates have increased, they aren’t keeping up with the price appreciations, leading to investors having much more equity trapped in their portfolios and a reduced ROE. In the past, the solution for this was always to sell the properties and buy bigger/better cash-flowing properties – this is where AM Portfolio+ comes in.
Investors can use AM Portfolio+ to release that trapped equity and redeploy it into other real estate or investment projects. This new increased leverage on the portfolio has allowed investors to bring their equity position back in line to support a more robust ROE and provide them the cash to deploy into other properties or projects.
Key Highlights for AM Portfolio+
- • One loan over a portfolio of residential homes
- • No personal income documentation required
- • Terms ranging from 5 – 30 years
- • Rates starting in the high 3s
- • Streamlined underwriting approach
- • Refinance/Purchase/Cash out
With rates at an all-time low and AM Portfolio+ available across the U.S., there is no longer a need to sell properties that aren’t providing the ROE they once were.
Release the equity with our streamlined underwriting approach and redeploy that cash into other areas. Call us today to discuss your scenarios.