Financing More Properties

[David Casal]

Hello everyone!

I have built a decent portfolio since acquiring my first rental in December 2013.  I now have 13 buildings with 37 units.  I have been mostly buying cash properties that need work, fixing them up, and then taking a loan on the final appraised value (80% of appraised value for 15 yrs).  The model was working great, but I have been working with one bank for all the transactions, and they now say my new loan requests must go in front of a board to get approved due to the number of loans I have (also total loan value).  The process of getting the money out of the equity I build has slowed significantly, and I have lost confidence they will continue to provide the loans I seek.

I feel I am at a turning point in the business because I have built it quickly and now wonder if I should be evaluating other potential sources of borrowing.  Should I just stick with the local bank and tolerate the slow approvals and vagueness of if they will continue to loan me money, or are there other options I should be evaluating?

Thanks for your input!