What experience do lenders want to see?

[Marcus Brown]

Would owning a bunch of mobile homes in parks as rentals be valid, or would it not count because they would be considered personal property?

In the next year or two I'd like to get started and buy a 5 plex, and in the longer term warehouse space. Currently I'm trying to figure out the best ways to set myself up to hit those goals.

[Billy Davidson]

Hi Marcus,

Have you ever considered starting out with a 4-plex instead of a 5-plex? It's one unit off from your goal, yet obtaining a residential loan is much easier compared to a commercial loan. The 4-plex as you know would put you in the residential loan category, whereas a 5-plex would put you in the commercial loan category. Also, the background you are presenting sounds like it should not be an issue to obtain a residential loan.

I would suggest building that credit up, not opening up any other lines of credit and create a portfolio that you can show to the lender that describes all your sources of income. Also note, that lenders have some sort of say when it comes to approving a loan, so if you come in and show that you have your ducks in a row... you might have a better chance at obtaining a loan. Please note that I am not a lender and I am just talking based on experience. Best of luck and I would love to hear your thoughts.