Investor · San Jose, CA · Member since 2017 · 11 posts · 3 votes
I already have 11 houses, i.e. 11 loans. All in California. And according to my loan agent, that’s the most one can borrow. Even if I apply for more loans, and even if my income is enough, it will not be approved. What should I do then?
How can I make use of LLC and start borrow in the name of the LLC?
Can I buy properties outside of California and still be able to get loans?
You can not buy with the LLC unless your LLC is proven to make money, than you still need to be the personal guarantor and you might still run into the issue that you have +10 loans.
Buying out of state will not help. Out of country is possible.
You can sell some loans so you get under 10
Find a portfolio lender who will bundle it up as a commercial loan. Downside is it will be +20% to +25% equity needed, so means worse case the only give you 75%. So you better have the houses at 25% equity or more.
Other downside is 25years max and interest is higher, so expect not to get the same cashflow as before.
So might be wise to sell the bad performing properties.
Get into multifamily houses and get commercial loans. But this means playing with the big boys.
Rarely you can see bundle of SFH where you can get commercial loans.
I already have 11 houses, i.e. 11 loans. All in California. And according to my loan agent, that’s the most one can borrow. Even if I apply for more loans, and even if my income is enough, it will not be approved. What should I do then?
How can I make use of LLC and start borrow in the name of the LLC?
Can I buy properties outside of California and still be able to get loans?
No plan to buy with all cash.
Please give me some advice. Thanks.
Easy, but you're not going to like it. Sell one two or more of your properties, and buy 2 more...one of them using the combined profit of the sold properties, and the other a new property all together. You're not going to lose anything if the combined property has cash flow equal to or better than the sum of the cash flows of the sold properties. The equity is the same...maybe better.
Don't fall in love (or get attached) to the properties. The properties are nothing more than the resting place (temporary) for your cash (in the form of equity). When you leave your cash in a property (equity) it dies. When you take it out and move it, it expands.