Hitting a wall and trying to keep momentum - Scaling.

[Derek Brandi]

Hello All!

Hopefully I can get some pretty solid advice. So my career in REI is almost at a fairy tale level. Everyone is paying and have not had a lot of issue except some bed bugs! I seem to be able to find some pretty decent deals for my buy and hold strategy that instantly cash flow. Right now I buy and hold duplexes and triplexes but am also open to any SFH-MFH that makes sense (and if I can get it!)

Hitting a wall. I acquired another multi family property and my banker is telling that loans are going to get increasingly harder to get without going commercial or having some private investors. My pride showed its ugly head as I nodded in agreement like I knew what she was talking about.

I like the stability of 15yr/30yr conventional financing and am not fond of the commercial arms. I have never used OPM for anything in my life so I do not really understand how that works.

Long story short I believe I have an investor that is willing to loan me at 2pts upfront 10% interest only/mo with a balloon of the balance at the end of loan.

I would only do this if I was certain that I could refinance the property and pay the PI in full with out any hiccups.  If iit is set up as a personal guarantee and the lender does not require a mortgage does the refi work the same as Freddie and Fannie loans such as how many you can have and the rules applied to them or is it different since I would have the collateral to loan against?

Hows everyone else doing it?

Trying to maintain momentum and as some people have 30 40 or even 100 properties - I cannot see them putting 20 percent down and getting another loan for everyone of these to acquire them.