Financing after 10 residential deals - Posted by Selah S. Binno

Posted by Selah on September 09, 2007 at 19:40:29:

Thank you Jimbo. Much appreciated. You mentioned you know a good mortgage broker…

My e-mail is or call me at 619-861-4665. Thanks again!

Financing after 10 residential deals - Posted by Selah S. Binno

Posted by Selah S. Binno on September 08, 2007 at 17:17:31:

My wife and I began investing in residential SF and duplexes a few months back. We are finding good deals and have been moving very fast closing 5 properties within the last 8 months. While we believe the fundamentals in each property to be correct (debt coverage ratios of >1.2, cap rates of 11% and 12%, etc) we just realized that once we own 10 properties, lending is going to be very difficult for future deals. What are some ways to get past that hiccup? Keep in mind, we don’t have a lot of capital and most of our deals have very little if any capital put into them initially so putting properties in an LLC or Corp is not easy due to the amount banks want down on commercial lending. Thanks to anyone willing to share some knowledge.

Re: Financing after 10 residential deals - Posted by Jimbo (FL)

Posted by Jimbo (FL) on September 09, 2007 at 18:25:16:

One great way is a blanket loan that wraps all of the properties together under an LLC. This is structured similar to a refinance, in that it pays off all of your existing mortgages and consolidates them into one loan.

Once finished, your credit is clear of mortgages; and you are free to get another 10 properties before having to worry again.

Or you could go portfolio. But I wouldn’t recommend giving ever lender you talk to your social security number. If you go this route, I would probably pick a good mortgage broker who can do the research for you, since time is money, and he only has to pull one tri-merge to close the deal.

btw, i know a good mortgage broker :wink:

Plenty of Ways - Posted by Jimmy

Posted by Jimmy on September 09, 2007 at 06:58:11:

FNMA and FMAC guidelines are what they are, and change from time to time. There used to be a 7 property limit and then a 5 and then a 10…

but if your lender does not re-sell the paper into the secndary market, you are not subject to those artificial limitations.

talk to local banks who retain their own paper (so-called portfoliolenders).

talk to any business banker. but for get about 100% financing.

when possible, get your seller to carry you.

and while you’re at it, stockpile your cash so you can be more attractive to lenders.