Rookie Multifamily Financing / Creative Real Estate Question

[Greg Larson]

Hey BP, a couple of quick questions here.  

I just moved to a new market and am looking to build up a portfolio of MF homes as quickly as possible.  I'm now starting to use some of my sales and marketing background to target off-market multi-family deals.  

First question..  Given that I'm a single individual with an average income of $75k per year, how soon after acquiring my first MFH would a bank allow me to take out another mortgage on a second MFH?  Is there a limit to how many mortgages one can have at one time?

The reason I ask is, I have a list of property owners I want to target and I may come into more than just one deal.

Second question.. If you had an "extra" MF deal on the line but couldn't get bank financing for some reason, what would you do with it? Hard money?  Seller Financing? Partnership with another investor?  Worst case scenario, wholesale it to another investor?

Thank you in advance for your advice!

[Andrew DeLorenzo]

Sounds like after this first property you need to find owners who would do seller financing unless you are looking to add partners. If I were in your position I would work on building up your network in this new market and I would do it through your list. Approach the people on your list more casually than standard marketing and try to get to know them and pull some wisdom nuggets from their brain bucket, try to add value to their business and cultivate a mentor/ mentee relationship and see where it goes. The street cred will go a long way when they eventually go a long way if they want to sell to you with owner financing or know someone who does.