question about max number of mortgages

[Sunny P.]

I was just talking to a lender and he mentioned that at most one can have 4 mortgages under their name.  How do some investors here have like 10-20+ properties all with mortgages? I don't see a big point in real estate to invest if you can't leverage.  

I currently have 3 mortgages and I was potentially looking at a place and that would put me at 4 mortgages total and then how would I buy more?   I know brokers and private investors exist out there but the loans are much more expensive.  

Any suggestions..ideas..thanks

[Mike Flora]

Market to multiple people and wait for the opportunity. A vacant property that needs repairs is how I got my deal. You offer a balloon payment in day 5 years. Structure the deal to where it makes sense to you and sooner or later you will come across a motivated seller. Here is how I structured my deal with my seller.

ARV 350K
Purchase price $292,500.00
25K down payment
1% interest of monthly balance
$1,100 principal comes off every month with payment and that never changes!!
Brings payment around $1,320 a month
Balloon payment at 4 years or longer if seller chooses
Property currently rented at $1800 a month
Taxes are 1.1%
Balance due at 4 years $214,700.00
I put 12K in repairs before rented
Property will be worth at least 400K in 4 years
HOWS THAT FOR A DEAL!!!

All cash deal was offered to him at 270K or my seller finance deal. We tweaked my initial offer to his liking on it but he liked that in four years he got more money than my all cash offer and saved money on taxes because of the seller financing and paying him over time. I put down less than 10% as well of the purchase price.

Create a letter and make copies of it and mail it to people in your area that meet what your looking for. I use Property Radar and it will creat large lists or exactly what your looking for in any city across the country. It will give you an excel list of owners property and mailing address.