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Updated over 2 years ago,
Reserves to be Held While Scaling
Tying to understand the amount the needs to be held while scaling. I know as a smaller investor that has 5 properties, banks want to see reserves prior to lending. At what point, are they no longer going to want to see 2-6 months reserves for every property and just going to understand that there is an account with a sufficient amount? Is there a calculation for what that amount would be. I know also, that this reserve amount is above the savings for small repair, cap ex, and vacancy. Looking forward to learning about this.