How to keep buying when financing dries up?

[Kevin Lee]

My mortgage broker has told me that I won’t qualify for any more mortgages because my debt servicing costs have exceeded 40% of my income. In reality my rental income covers almost all my costs, but the banks only count 50% of my rental income (to account for vacancies, tenants that don’t pay, changes in the market), so according to their calculations I’m extremely cash flow negative.

I’ve got about $2M in mortgages, $1.5M in equity, a household income of $200k, and $90k in rental income.

This is extremely frustrating because I’ve got $200k sitting in the bank and tons of equity, but I can’t get financing or refinance the equity out. I don’t want to just buy properties in cash if I can avoid it because I want to lever my returns with debt.

I see guys in my city with portfolios twice the size of mine and there’s just no way they’ve got day jobs pulling in $400k or more to support their huge portfolios. Is there something I’m missing about financing?

I’m in Toronto, Canada. Thank you.

[David Avery]

Bankers, Bankers, bankers!

It sucks because most the time anyone with gray hair gets treated like crap.

Skinny jeans walks in and husband and wife make $160K and they get the great rate and another loan in less then a year!

We have  net Worth of $2 million and can't get crap!

Go figure.

Bring in a money partner and let him be the remaining banker!  Or a new  Mortgage Broker.