RE: Freddie and Fannie (Conventional) Loan Quota

[Sean Hou]

Hi BP Friends,

Currently I have 4 small investment SFHs under my name (each has a conventional loan). I am thinking of transferring these properties to my single member LLCs and getting them refinanced through portfolio loans (from a portfolio lender who keeps all loans in house). Would that free up 4 of my conventional loan quota?

I thought the answer is Yes until I listened to a podcast recently and a speaker said the answer would be No because SMLLCs flow everything (including the 4 portfolio loans) to me.

I haven’t reached out the 10 conventional loans yet, but am planning on getting there in the near future by getting higher fair market value SFHs using the lower rates offered by conventional loans.

Thanks for your insights!