I am about to close on my 6th door in 6 months, but am not sure what to do next!?!?

[Gualter Amarelo]

Hello All!!

I am at a point where I think I have used up the extent of my "easy" traditional financing. I have 5 doors cash-flowing $1k per month of relatively passive income and I'm working on tying up an SFR that should bring in another $100-$200 per month.

Things have been cruising along very nicely, but I fear my operation will be coming to a grinding halt. My boss basically told me that my job is being eliminated soon which is going to kill my relationship with the banks. I have to age my duplex another 5 months before I can pull equity out of it and I'll have to do the SFR. Combined I think I'll potentially have around $80k to play with and dump into 2 more multi's, but I won't be able to pull it out or qualify for any kind of loan if I don't have a permanent job.

Further more I am looking to switch industries to get into property management or something similar in real estate.

My real question is this: If I can land a permanent PM job, how long will it be before a bank will count me as someone they can lend to again? OR do I need the permanent job to pull out the equity in the first place? If not I may just jump right into flipping/rehabbing properties with the $80K as soon as I can get it out.

Let me know what you guys would do. What options are available that I'm missing?

[Jon H.]

I work in the mortgage dept of a big bank. typically you need to show 2 years employment history. If you can find a job before you lose your current job that would be best. You don't need any breaks in your employment. Also most lenders will only lend you money up too 3 deals.
I would suggest networking to find private money lenders. These are everyday people in your area that want to make 7-12% on their money depending on what kind of deal you are looking to do. For flips you usually pay 12% with a guarantee of 6 months interest. for rentals/long term holds you can offer them as little as 6-7%. Thats way better than what a bank will pay them to hold their money.
Worst case scenario you could use a hard money lender but then your looking at 20% interest which won't work for a long term hold.
I would network your local Realestate Investors Club and start asking around about private lenders.