For the guys that own hundreds of properties

[Mikey Cas]

Hi everyone, I had a question about accumulating investment properties. I just finished reading an interesting article about how an investor amassed hundreds of properties. I know everyone has their own unique situations, but I was wondering how this is possible. Lets say I want to start off with one property, then eventually save up enough and buy several others. If this were to become my full time job managing and investing in properties, How does one obtain financing. I always thought Lenders base loans off debt to income ratio (example 50k income will give loan up to 250k) It doesnt add up all of the debt these investors rack up, is income based on projected rentals? Do they have corporations finance the properties? I know im getting ahead of myself but I was trying to figure out how these real estate gurus obtain financing. Thanks

[Rich Weese]

Mikey- I don't currently own hundreds of homes. There were times when I owned over 100 at one time, but currently own around 75. If you count apts, I'm over 200. My wife and I personally (no partners ) have owned a little over 1000 sfrs in our lifetime.

Here are some answers, and you can find lots more in previous posts and threads here on BP.

1.Lenders will count a % of rent from each rental in your qualifying. If you have other income or free and clear properties, this one will be ok. If you package multi homes together, lender will look harder at ability of properties to service the debt, than looking at you.

2. Owner financed properties don't have the same regulations and requirements. Tons of those currently available. Best way to grab multiple properties quickly.

Alan-
1. I've never had experiences to JV with a public lender. I have with private, but only paid higher interest, no share of profits.

Jimmy-
1. If you have some experience, decent income AND gift for gab, I'd start with owner financing on hard to finance properties. MH would fit this category well, as does older properties. Maybe Jon Klaus is awake, and he has had great results with this and can chime in.
2. MF- I subscribe to the theory that more is not always better (except for obtaining more depreciation).
3. If goal is more properties, MH or mf is probably the quickest. If long term creation of real wealth is the goal, I'd prefer newer sfrs. If cash flow is tough in your area and you want to stay there, then your choices and options become less.
I like your thought process and specific plans. I've NEVER had any luck with REO tapes.
I didn't do much in RE for about 25 years, then was challenged. I was told by many that you couldn't create wealth doing it the way I had 30+ years ago. I finally had enough doubters and decided to prove them wrong. Short story is I moved to a new state, TEXAS under 3 years ago. I bought 26 homes in 35 days and the majority were owner financed and ALL were less than 10% down. I did use approx 250K in cash eventually and began buying at foreclosure sale. In 19 months, I purchased or built 68 homes.( now have a subdivision in same area with 20 homes, 10 are mine and 44 lots. Just broke ground on 4 new models) It can be done. Much of the funds used were generated from profits in re-selling rehabbed foreclosures.
I'm sure there are many on here that would think or tell you "it can't be done now". There are others that are ,,,,DOING it. I was told the same thing 3 years ago. Lots more info on this in other threads and posts as to specifics.

Never over expose yourself on the risk and ALWAYS prepare for the rainy day.

You asked:
"Being relatively young what would be the best ways to achieve the goal of acquiring 100+ propertie sin the shortest period of time?"

Start now! Rich