Lenders for BRRRR's and getting over the 50% Debt to Income.

[Alex Smith]

The BRRRR method is incredible. Reading so much about it every chance I get.

How can you keep getting new loans for the refinance though? I was told by my lender that my Debt to income ratio cant be more that 50% to qualify for the loan. I have a good paying job and after about 5 BRRRR deals I will be maxed out on that 50% debt to income ratio and not able to get another loan.

Not to mention hearing about these people with say a teachers salary or David Green as a police officer... How can you qualify for so many loans and scale such a large portfolio? You would max out your capability to get approved very quick!

2nd question. You can only have up to 10 conventional loans. Thats if my debt to income is under 50% and I get approved for the loans. What do you do once you reach 10 loans?

Also anyone in the Houston Area know any good lenders to work with the BRRRR method please direct message me.

Thank you in advance for the amazing advice Im sure to receive. 

[Alex Bekeza]

@Alex Smith

"How can you keep getting new loans for the refinance though?  What do you do once you reach 10 loans?"

- Many BRRRR investors end up relying on portfolio or commercial loan products which have no limit on the # of financed properties you own. These loans do not even calculate DTI. They won't ask for pay stubs or tax returns and will instead rely on the subject property's cash flow (DSCR) and the guarantor's FICO. Of course, rates are higher (5/6% range - 30 year fixed) but there are may compensating factors. (LLC vesting is fine, these don't report to credit bureaus, more flexible underwriting, etc etc.)