Multiple Investment Properties - How to get Loans

[Matt Van Woerkom]

I'm new to managing properties and was wondering if anyone could give me advice of getting loans for future rental properties. I currently own 2 rentals and my own house. I'm having issues with getting additional loans because of my debt to equity ratio (they won't even let me refinance). I recently purchased my last rental and have not established a long enough track record to improve this ratio. I'm by no means broke and I am in pretty good financial position so I don't know how people do it...I see a lot of posts about people getting new properties every couple months and I'm wondering how this works with the banks. I assume not everyone has enough money to make all these purchases with cash.

[Ryan B.]

Find a small local bank to build a relationship with. The bank I use gives me the money to purchase a house that needs rehabbed plus all the funds to do the rehabbing as long as I stay under 85% LTV of what the subject-to appraisal comes in at. They used to make me do a construction loan, but this last time they just deposited into my account at closing how much I wanted for the rehab.

Then as soon as I have it rented they allow me to rinse and repeat.

Gotta love small banks.