Scaling with mortgages question

[Andrew Kennedy]

I keep reading stories where people start off with a property per year, then I hear people purchasing a property every month. Between a person and their spouse, they can only have a max of 10 mortgages. So what do people people do when they are scaling like that? Is there a limit on mortgages that a LLC can have? Do they have their LLC take on the mortgages? Do they take HELOCS to do all cash purchases? What if you're BRRRRing and you already have the mortgages capped and can't get another mortgage? Your BRRRR would be shot. So what do you do? Maybe bring a partner and leverage their credit? I know there are a lot of options but I'm curious as to what options you take. Thanks.

[Nick Belsky]

@Andrew Kennedy

This is where non-QM lending comes into play. Many DSCR lenders do not report to your personal credit and allow you to close as an individual or under an entity, some states require an entity to close. Many investors will begin to blend their loans between conventional/agency and non-QM before they reach their limit of 10.

BTW, that is 10 per person, not for a married couple.  You could do 10 in your name and 10 more in your wife's name... together you would only be limited to 10 if you did them jointly.  Your primary home is #11.   That's the cap.

For non-QM there are no exposure limits.  Some investors will refinance their conventional investments to non-QM to free up slots or simply purchase them with non-QM to begin with.  There are several strategies to employ but the main goal is to not run out of financing options...

Cheers!