Quick Question on Credit and Creating Large Portfolios

[Account Closed]

Hi Everyone, I’m new here and I’m pretty sure I’m missing something, but how do you invest as an individual in multiple properties without destroying your credit? At some point doesn’t debt to income tap out or your credit to the point at which you can’t acquire any more properties? I’m just asking because I see so many videos about people with 15, 25, even 100 units yet no clarification on the details and logistics of how this is possible.

Sorry if the answer is obvious to some, but as a newbie, I have no clue. Thanks for your time
 

[Charles Carillo]

@Account Closed

The debt-to-income ratio is commonly used when people are purchasing 1-4 unit properties where the underwriting is mostly performed on the borrower, not the property. Once you start venturing into 5+ multifamily properties, they are considered commercial properties and the loan underwriting is focused more on the property and less on the borrower. Yes, they want to see a good credit score and your tax returns but the property is what they are really evaluating along with the real estate investment experience of the borrower.