Owner a multiple properties having trouble getting Commercial loa

[Lucas Wacker]

About me: -I currently own 7 properties (3 are duplexes) -Only have loans on 2 duplex's in Alaska -Excellent credit score -Steady private sector job earning a decent wage The majority of my debt comes from my properties I own in Alaska. I would like to purchase a 6+plex and have been able to save up a substantial amount for a down payment (around 40-50%) if i need it. I called rocket mortgage and started the loan process. Eventually they came back to me and said that my debt to income ratio wasn't good enough and that 2 of the properties in my portfolio did not have 2 years worth of returns so they couldn't be included in the figures. Also, that the majority of my properties did not see very much (if any profit). I explained to them that I buy properties that are not updated and each year I reinvest a large amount of the rent into the properties to increase their overall value. For example; a duplex i bought from the muni a few years back, I put up a privacy fence around the entire property which ate up 65% of the rent for that year. The very same year i furnished one of those units and started to Airbnb it out. They did not care about any of it. Even when i asked if that they are taking into account the projected income i would make off of that 6plex, they said, "we cannot take it into account unless its been 2 years of reported income. " I think what frustrated me the most was that when i spoke to the rep who was telling me i was declined and explained to him that even though my "Debt to Income" was not as low as they'd like i have still been able to amass a huge down payment and able to pay off a portion on my portfolio on top of that. I wanted the human factor involved and not just some computer spitting out a percentage and everyone else saying "Well the computer says no." Any advice for someone looking to expand their portfolio with a commercial loan? Thanks!

[Tyson Cox]

Alaska has a great commercial property loan through AHFC with excellent terms. They are currently at 5%-5.5% amortized for 30 years. You do have to keep reserves with them for $350-$375 per year per door and they take longer to close. They will lump multiple properties together to get 5+ units if the buildings are within a certain proximity (in Soldotna it was several miles). To date we have done three of these loans. Private message me if you would like to discuss this more :)