Financing

[Brad McCulloch]

I have recently been talking to a few local lenders about transitioning from small real estate investing (I own 5 small homes in rural areas) to purchasing larger, multi-unit housing.  Since I am currently showing a loss on my taxes for these properties, the banks are telling me that they won't use my investment income as a basis for additional loans. 

My question is, do I need to change my tax strategy and not show a loss, or do I need to pay myself a wage?  I took an early retirement a few years ago and am on on a fixed income that is about maxed as far as the banks are concerned in regards to additional loans.

I'm new to this type if investing and I know I am missing a lot here, but if you have equity in a property, and the property is used as collateral, shouldn't this be considered by the bank in addition to your income.

Thanks for your time,

Brad