More than 10 properties

[Mary Jay]

Can you please help me out?

I am trying to figure out the best investment strategy for my future..

I only have 3 rentals now (besides my house where I live) 

I was thinking about continuing to buy single family or small multifamily (so I could stay with residential financing)

1) I am in escrow on a fourplex, do I understand correctly that even though it consists of 4 units, lenders  will still consider it as one loan (loan number 5) , right? 

2) If I get 10 loans financed via conventional lending (backed up by Fannie MAe) then what? I am maxed out? I have to go to through commercial lending? 

3) Portfolio lending is the same as commercial lending, correct?

4) if you were me (and I love conventional lending and sort of scared of commercial lending) would you rather buy a portfolio or stay with small multifamily/single family?

Thank you!

[Andrew Postell]

@Mary Jay hi, thanks for posting here.  Here are your answers:

1) I am in escrow on a fourplex, do I understand correctly that even though it consists of 4 units, lenders will still consider it as one loan (loan number 5) , right? - You have this 100% correct.  This will count as one loan against you if you are personally obligated for it.

2) If I get 10 loans financed via conventional lending (backed up by Fannie MAe) then what? I am maxed out? I have to go to through commercial lending? - You are correct again!  Commercial loans would be your next step.

3) Portfolio lending is the same as commercial lending, correct? - Three times in a row!  Yes, the term "portfolio" really means it comes from the bank's own portfolio of money.  In other words, not from Fannie/Freddie types of loans.  Commercial loans are portfolio loans.

4) if you were me (and I love conventional lending and sort of scared of commercial lending) would you rather buy a portfolio or stay with small multifamily/single family? - We always want to stay with Fannie/Freddie loans as long as we can.  Their rates and terms are just so much better especially in the beginning.  We need those lower payments to help us cash flow more and that helps us qualify for more loans easier later on.  And it's pretty normal to be nervous about things we don't know about.  The more you learn about commercial loans the better you will feel about them.

Hope this helps!  Feel free to tag me with anything additional.  Thanks!