Posted by Mark (SDCA) on August 09, 2006 at 19:36:58:
Im not aware of a max per year. But there are certainly absolute maximums. My lender used to be able to do 20. I haven’t asked lately. Talk to your lender(s). They can tell you.
How Many Loans Allowed For SFH? - Posted by Greg M.
Posted by Greg M. on August 09, 2006 at 17:34:53:
I’m looking into SFH to rent - lease, I’m wondering how many loans or how many properties I could buy per year, I was hoping for 2-4.
I’m finding it a whole lot easier to buy with bank money than creative finance with sellers.
Is there a limit?
I plan to rent - lease each property for 2 years, ( tax purposes )
I have good credit & 697 average fico.
Thank-You
Ben is right on, I would only add… - Posted by David Krulac
Posted by David Krulac on August 10, 2006 at 15:35:21:
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for mortgages sold on the secondary market to FNMA, GNMA, and FREDDYMAC, they is a loimit of 10 per person.
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However married people can do 20, because they are 2 people. Need to be deeded to only 1 person of the marital union.
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Portfolio, non conforming loans, private loans etc, do not have the 10 rule, you can have 100 or 1000.
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Commerical loans including multis 5 units or more don’t count against the 10 rule either.
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CFD, lease options, lease purchase, seller financing, mortage assumption, get the deed, etc, also don’t count
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You can literally buy 100’s of properties and never have a problem with the 10 rule, really, ask me how I know.
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It used to be a 4 rule and I still wouldn’t let that stop me.
No simple answers - Posted by DaveD (WI)
Posted by DaveD (WI) on August 10, 2006 at 11:45:04:
A lot of your questions remind me of the sad recent historical quote of “depends how you define what IS means.”
What is your perception of a loan? Bank money? Creative financing? Limit? Buy? Easier? Those definitions may mean something different to me than you. OK, so I’m being a little deep here. But we all come into any area of endeavor a prisoner of our own perceptions, misconceptions, talents, opportunities, fears, strengths and weaknessess. And experiance.
That means, the more creative, flexible, problem solving, adaptive and clever you are, the more deals and financing you will put together.
Just a few observations…
“… how many loans or how many properties I could buy per year, I was hoping for 2-4.”
You can buy as many as you have the inclination to. Sooner or later you will have to get creative about your financing. That doesn’t always include the seller, but it makes it a whole lot easier.
“I’m finding it a whole lot easier to buy with bank money than creative finance with sellers.”
What are you suggesting your sellers do? You may not have earned the right to do so. Or, you might be begging unmotivated sellers. SW SW SW SW. That stands for “some will, some won’t, so what, someones waiting.”
“Is there a limit?”
The limit is your creative imagination. A good deal will always attract financing. It just won’t always be through traditional means. Realistically, your banks will cut you off at some point. Debt to assets, debt to income ratios will get out of hand. Still safe for you, perhaps, but will freak the lenders out.
“I plan to rent - lease each property for 2 years…”
That’s fine, but don’t lose sight of all the other ways to make a buck as you come across deals.
Re: How Many Loans Allowed For SFH? - Posted by Ben Carmona
Posted by Ben Carmona on August 09, 2006 at 21:06:55:
Most of the lenders that we use as brokers will allow you to aquire up to 10 properties total. No restriction as to how many per year. You’d just need to be able to income qualify still. These lender’s will usually want at least 10% down.
After you reach 10 or if you need 100% financing there are lenders that we use that offer portfolio products. The guidelines for these lenders can be a bit different but many of them will limit a client to 2 in a 6 month period or 4 in a 24 month period.
Ben Carmona