Credit score dropped like a rock after 5th property!

[Clint G.]

Hey team!

I bought 3 properties last year giving me a total of 4 investment properties, plus my personal home. When the bank opened my loan on my 4th investment property, my credit score dropped 90 points. This has NEVER happened. My score was just above 800 when this happened, and I never pay late or carry CC balances etc. DTI is solid as well.

Anybody had this happen? Is there a solution?

I'm going to BRRRR this most recent property, but now my credit score is keeping me out of the top tier for the refi.

Thanks!!

[Kenneth Garrett]

@Clint G.
If DTI is becoming an issue then I would transfer the property to an LLC and refinance to a commercial loan. You can do this all at the same time. So there is no need run out and transfer the property. Talk to a commercial lender and explain you want to refinance a property and you will set up the LLC at the same time. This should not be a problem.