Real Estate Agent · Houston, TX · Member since 2022 · 135 posts · 84 votes
Hello!
My wife and I have a portfolio of 5 houses currently. We have a 3 more new construction duplexes in the works as well, just waiting on permitting to get approved. Up until this point , we have been buying the land with our cash, constructing the homes with cash, renting them out, and using a DSCR loan to pull most of our money back out.
I'm looking for a better way to scale this though. Maybe a commercial line of credit? We both have great credit scores, equity in homes, and an ample amount of cash, we are just looking for a more efficient way to scale. I am an RE agent and she owns her own business. Any suggestions would be appreciated.
Hey @Chris Kersey a good problem to have by the sounds of it! You may have a couple options available to you.
1. Increase leverage on your Construction Financing for your new builds. (depending on your current financing, the limit is going to range up to 90% LTC in most cases)
2. Leverage JV/Equity/Mezz on your projects, either by leveraging the existing properties and cashflow, and putting a second on those, or bringing on the JV/Mezz financing on the New Acquisitions/new builds
Alternatively, finding another private investor locally to you who has additional capital or other offerings to help you scale could be the ticket as well! All depends on your goal.
Happy to chat on the #1 and #2 above if interested, feel free to DM me!