Who can cash out on 15 properties?

[David H.]

I called my mortgage loan officer yesterday to discuss lending options for my many properties in LA.  I'm looking to grow my business, and I wanted to borrow using my rental homes as collateral.  I have zero debt.

She said for the SFR properties, bank policy is limited to 4. She didn't do multi-family, but said I could potentially go to a commercial bank.

I know someone on BP has tried this before.  What's my best bet if I want efficient access to capital to acquire more foreclosed properties?  Should I just finance new acquisitions as purchase?  Or should I lever existing home that are unlevered and buy new homes with "cash."

David

[Thomas Guertin]

It sounds to me that you only called one bank.  I have 12 banks or so in my area and it amazed me how different each bank is.  Some require 70% loan to value and others go as high as 80% loan to value.  Most go out only 20 years but I found one to go out 25 years.

I would suggest making a list of every bank and credit union in Excel and ask what their terms are, how many they would refi, do they have the option of portfolio loan, etc. You may come across one that you like that can do all 10 properties. Maybe you can get a LOC and save some money on closing costs.

You mentioned that you were surprised that "They want leases on ALL of my properties, two years tax returns.... geez. All for a maximum of 4 properties?"  I would think every bank wants this information, it is pretty standard for all the loans that I have gone for.

It's work to get mortgages but if you want the money, you'll do the work.

Tom