How to Scale Your Rental Portfolio When the Banks Stops Lending To You

There is a point where banks will no longer lend to you. When I got to a number of properties, I found that banks no longer looked at me as a person increasing the properties that I own, but as a real estate investor. At this point, I was no longer able to get loans to scale my business. at this point, I had to get creative and you can too.

One of the best ways to scale up is to find money partners. If you have “tapped out” when it comes to the banks, you must have garnered enough skills, experience, and connections to make real estate investments that can potentially earn a lot. At this point, people may even realize that you are doing well and may be willing to put money into your operation with an arrangement that benefits all parties.

Keep an eye open for individuals who are earning very well. They may be a doctor or a surgeon who works many hours on a daily basis. Such individuals typically have loads of funds sitting in savings and investments. If you present the right deal to these folks, they will seriously consider coming on board and provide you with the capital you need to scale your real estate business. you will likely need to find multiple individuals to grow your real estate portfolio to the point you would want it to be.

This is the exact thing I did when I was trying to scale after “tapping out”. I got into the property in contact. I found potential money partners and told them that I was in need of $100,000 for the down payment and presented them with an offer that they were not able to refuse. I shared the plans to fix up and improve the property to force the appreciation up and make it worthy of a rent that would bring in favorable cash flow. The equity on the property was to be split 50/50 and the monthly cash flow would be split 50/50. To sweeten the deal, I also share that down the road, we are going to refinance and when cash is taken out, the cash will totally be given to money partner.

This has worked for me and it can work for you too. This is, of course, not the only way you can use to scale your real estate business. you simply need to get creative and be confident in your ability to manage real estate and select wise real estate investment opportunities.