Lending for investors with multiple mortgages

[Blake Furtick]

Hey guys,

Hope everyone is doing well! I just had a few questions for you all. My wife and I have been investing in real estate for the past 5 years. We have 3 SFH and a primary residence. We currently have a total of 4 mortgages and we are STUCK! We can't find anyone who will give us another mortgage. Has anyone else had these problems? We want to continue to grow our portfolio but we don't see a way to move forward unless we find seller financing options and that can be tough. What strategies have you all used to get past this point. Thanks for taking time to respond!

[Kenneth Garrett]

@Blake Furtick

You can utilize commercial financing even for SFR. You'll need to own it in a LLC or other entity, DSCR 1.25 or better, need an operating agreement, EIN number, loan most likely will be 5, 7 or 10 years in length. Mine are usually 5 year balloons and then I refinance. Don't need to worry about how many mortgages or DTI. Interest rate is higher than residential about 1%. I prefer small local banks they seem to be the easiest to work with. I find the process much easier then residential.