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?