How to you get loan from banks to scale rental properties

[Leela Gutta]

I am very new to rental property investment. I just bought my first rental property and I am learning everyday. One of questions I have is how do you keep getting bank loans to scale on a large scale? I am going to cap at some point as I already have a primary residence mortgage. Appreciate if you can direct me to any resources where I can learn more about this. 

[Josh Caldwell]

Simple answer, you can't scale with bank funds. At some point you will hit the glass ceiling.  Banks think (incorrectly) that having more mortgages equals more risk for them. That is why when you hit 4 or 10 loans, depending on the bank, that they will stop lending you money. That is when you will either embrace non-traditional lenders, hard money or private money; or you will need to learn creative finance.  We have all faced this problem.  The good news is that the real estate world is different than the banking world. Our funding avenues understand that your next deal might be fantastic, and the number of other loans that you have is basically irrelevant.