LTD Ratio- Buying More Real Estate-Financing

[James Wilson]

Hello-

I am an investor with 5 properties in the Seattle area.  I am self employed.  I am wondering about options for acquiring financing to purchase more real estate.  My Debt to income ratio is high due to being self employed.  My credit is excellent.  Any ideas for financing?  

[Alex Chin]

Hello @James Wilson, @Greg Harriman.

If you haven't already, you should read up on the BRRRR strategy, it's pretty simple but has a lot of potential for your situation, and it nicely sidesteps the DTI ratio issue:

Buy: with hard money, advantage here is that the property is paid for with cash, so you can just put in an LLC immediately.

Rehab: either with the loan or your capital

Rent: get a tenant in

Refinance: ideally, start this process as soon as you buy, look to cash-out and essentially have a new property at 25% down, on a nice 30-yr. term.

Repeat!

If you are looking to finance through a regular bank or mortgage broker, I do have a contact who has been pretty good about working with investors and may be able to help you. If you'd like, I will message his contact info to you and you can see if he will meet your needs.