Refinance Brick Wall: More than 10 Loans

[Daniel Hart]

I have 20+ rentals and need to start refinancing a few of them to take advantage of residential loan terms. I have no problem qualifying in terms of Credit, Income, Assets, and strong Appraisals. I was just notified today that my two rental cash out refinances that were in process were denied because I have more than 10 loans. I do not want to get a commercial loan yet because of the increased cost and less attractive terms - I was originally approved to refinance the rentals at 4.5% on a 30yr with 1 point and a 75% LTV, so that's what I'd like to achieve. I only need to refinance two or 3 houses at 75% to generate enough cash to eliminate my high rate debt.

Has anyone found a viable solution for this problem?

Some ideas we have:

1) Moving half the portfolio into a corporation (s?), might have tax consequences.

2) Paying off a few loans and consolidating loans with the same private lenders into one loan to create a perspective of no more than the 10 total loans. (we aren't sure if the rule is loans or financed properties)

3) Trying to find a residential portfolio lender that doesn't mind doing loans under $100k and whom can ignore the silly Fannie/Freddie 10 loan/house limit.

Thoughts?

[Albert Bui]

Some Ideas:

1)If you're married you can shift properties to a spouse title and debt obligation (unless if subject-to since its neither of you) this way you can be strategic with your financing options. You can still do rate and term refinances at 5-10 financed properties per "social security #." If you plan it right you can go up to 20 financed properties per couple or more with family members you trust.

2)Portfolio financing or credit unions - Navy FCU has a commercial portfolio loan for residential property's with decent terms for 10+ properties, and also a lot of portfolio lenders have a minimum loan amount, specific county's or MSA's they'll lend in, or other requirements

3)Utilize primary residence cash out to payoff some rentals and reduce your number of financed properties. These lines of credit or loans can be obtained at relatively low rates up to 90-100% of LTV depending on credit union or local community bank

4)Leverage other assets if terms and rates are favorable like 401k plans &  other qualified plans, cars if paid off, cash value life policy loan, business assets inventory/accounts receivable financing, commercial RE cash out, etc