TX: How do I get a loan when I have too many properties?

[Casey Russell]

Mot asking for a loan or specific lender, but I'm really asking how this type of situation is handled.

All the traditional banks I've talked to won't lend to you if you have 10+ mortgages.

All the hard money lenders offer loans for short turn around with high interest rates.

How do I get a loan for a long term buy and hold rental property when I already have 10 rental properties financed?

I have good credit, good cash flow, and tons of value in the equity in different properties held; but I don't have enough cash to buy the property I want without a loan. I keep running into dead ends and I don't know how to move forward.

Anyone who can give advise will be greatly appreciated.

[Michael Ealy]

Originally posted by @Casey Russell:

Mot asking for a loan or specific lender, but I'm really asking how this type of situation is handled.

All the traditional banks I've talked to won't lend to you if you have 10+ mortgages.

All the hard money lenders offer loans for short turn around with high interest rates.

How do I get a loan for a long term buy and hold rental property when I already have 10 rental properties financed?

I have good credit, good cash flow, and tons of value in the equity in different properties held; but I don't have enough cash to buy the property I want without a loan. I keep running into dead ends and I don't know how to move forward.

Anyone who can give advise will be greatly appreciated.

Casey,

I've acquired 1,000 apartment units so it's possible to go way beyond the 10-loan limit. Here are 3 ways to do it: 

1. Look for a commercial lender or portfolio lender. The 10-loan limit is for conventional mortgage loans. With a commercial lender or lenders who keep loans in their portfolio, there is no 10-loan limit. With a commercial lender, you need to put up an LLC or corporation and borrow money and take title into an LLC or corporation.
2. Do a 1031 exchange - exchange the equity in your 2-3 properties (sell them) and buy a bigger property (more expensive and/or higher loan amount). The loans on your 2-3 properties you sell get removed from your credit.
3. This is my favorite. Raise PRIVATE MONEY. Since you've bought 10 houses with equity and positive cashflow, you now have a track record of success so talk about your experience. Network both online and offline and you will attract private money. You can tell people they can use their Roth IRA - get it self-directed and it can lend you money so you can buy real estate. There are a lot of retireees who put their money in CDs earning 1% or less and they will be more than happy to lend their money at 5% secured or collateralized by houses you can buy at a discount.

Makes sense?