Financing Issues

[Anthony Bonanni]

Real estate investor here with a few properties in my portfolio-all with a partner. Our properties are all single family homes or condos.

Our usual process is 20% down and 30 year am schedules. However, upon closing on our last property we got a call from the bank saying we "were at our cap" and would no longer be able to get debt from the bank even though we still were willing to do the usual 20-25% down. Coming up with the 20-25% down payment will not problem be a problem going forward as we only do deals in which we can put that much equity in at the beginning.

We are meticulous in our projections and all of our deals fall within our goals for both cap rate and cash on cash return. As we are still relatively young, we are just looking for guidance on how other investors overcame the hurdle of financing. Especially in instances in which investors were always looking for 20%-25% down. We say as long as a lender/bank gives us the "ok" to keep doing deals at rates determined by them we can scale quickly.

Some ideas that people have mentioned are trying to get commercial financing or doing something similar to those lines. Just looking to see if anyone has gone through a similar chain of events. I know this is probably the most difficult thing all REIs deal with. Any advice will be greatly appreciated. Thanks in advance.