Posted by Dave T on August 16, 2001 at 21:15:04:
The only time I ran into this problem was when I already had four mortgages with the same lender. I was told that their underwriting guidelines prohibiting them giving me a fifth loan.
I just went to another lender.
3-5 Properties from lenders - Posted by Arif TX
Posted by Arif TX on August 16, 2001 at 08:51:17:
How do you get around lenders who won’t give you a mortgage on a property because you’ve hit that magic 3-5 property maximum? I would like to hear from someone that currently has a lot of properties that they are holding for income. thanks
Re: 3-5 Properties from lenders - Posted by Jim FL
Posted by Jim FL on August 16, 2001 at 19:06:03:
Arif,
I’m not the type of investor who uses bank loans, but I do have a relative who invests using them all the time.
He holds about 25-30 houses at any given time, and they all have loans on them.
He ran into the issue you describe here when he began.
He then just moved from one lender to another, and made sure he bought all his homes for under market value.
One avenue you may want to consider is trying to buy without having to get new financing.
You can surely find some motivated sellers who will deed the home to you, sell with owner financing, or even agreement for deeds.
Then there are no hoops to jump thru as far as lender requirements.
Try reading the things here on this website, and you’ll soon see this is the very nature of creative investing.
I have quite a few homes now, and not one bank holds a note with my name on it, or that of my company.
No one ever asks how many houses I have, nor do they care.
The sellers I deal with are the type that just need a solution and I provide that.
HTH,
Jim FL
Worry about it when you get there. - Posted by Jeremy FL
Posted by Jeremy FL on August 16, 2001 at 17:52:47:
I have never had a problem.
Re: 3-5 Properties from lenders - Posted by Ben (FL)
Posted by Ben (FL) on August 16, 2001 at 14:48:57:
Keep looking. Try the commercial lending department of small banks. Commercial loans will have higher interest rates, but they are often easier to qualify for, if you have good cash flow on your existing properties.
Re: 3-5 Properties from lenders - Posted by Dave T
Posted by Dave T on August 16, 2001 at 12:34:35:
Do you mean 3-5 mortgages from the same lender, or do you mean 3-5 rental properties in your portfolio but none of those financed by the lender refusing your loan application?
Re: 3-5 Properties from lenders - Posted by Arif TX
Posted by Arif TX on August 16, 2001 at 14:14:54:
I often hear people having trouble getting additional mortgages once they reach 4-5 properties. I wanted to know what they or others do to avoid lenders limiting them since I have a goal of 20 rental properties.