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Updated over 4 years ago on . Most recent reply
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How to best growth your rental portfolio after 15-20 years ?
Dear All, we are all here sharing common interests in this real estate world and I am always open to learn
I am inviting you to share your opinions, knowledge on this topic that besides been important and relevant to most businesses (how to growth and using financing to growth) it is always changing due to the changes on the regulations, banking guidelines, and always changing circumstances like we are facing now (virus-standby economies on most places)
Here is the example of what I need to do:
I got 10 properties, 1 million dollars in equity after paying all debts, about $10,000 income monthly, and I know I can acquire and rehabbed another 10 properties or more within a year. In other words I can at least double the amount of properties in a short period of time, let's say a Year or Two (no rush). So far I have grown using the oldest traditional way: organic grow.
I want to do it rather quickly at this time. I believe I shall incurred in Debt to Finance this growing operation but I am open again to learn if this is not the way. Options that I am aware of are Blanket Mortgages (were popular years ago), Now someone mentioned Portfolio Financing ( a novice in this topic myself), and Revolving Lines of Credit which I loved in the early 2000's but there seem not to be popular these days anymore.
FYI, the Property Management is taken care in house, 20+ years Experience, Cash flow Position is good, Market is great. So growing is not a problem but a well tough business decision. I want to focus this conversation in the Financing Aspect and its pros and cons if any or many and or if there are other Options (seems like always there are things we do not know)
What say you, my real estate professionals colleges, how would you do it and why ? Thanks in advance for your input
Finally, any referrals you may want to consider offering on these financing options, would be greatly appreciate it !!!
Yours Respectfully,
Oswaldo Taborda