Building Property Portoflio and Financing

[Brad Z.]

I want to start out by saying that is a great forum. Anyways, I have 3 properties now that have good cash flow (I do have mortgages on all of them) and I want to continue to build my portfolio but the only way to do that is through financing. I have some cash but not enough to acquire properties as quickly as I prefer. My question is for those of you that have 10,15, 20 or 50, etc.. properties. How did you build that many? At some point you have to start paying cash I would imagine. I know building a strong and established rental property portfolio takes time and patience but I am interested in hearing how people were able to acquire that many properties?

Thanks!

[Michael Rossi]

Brad,

I bought most of mine with financing from 2 small local banks (both portfolio lenders). The key to borrowing money from small local banks is RELATIONSHIPS! You need to know the key people at the bank - like the President, Vice-President, and Chief Loan Officer. Obviously, you also need excellent credit and a history of success.

Having said that, I have also bought rentals with owner financing, via lease option, subject-to, and with cash.

Good Luck,

Mike