Posted by Angie on July 14, 2002 at 10:09:11:
I am in Texas. I suppose it applies to the whole country.
Others have posted me and told me to go to a local bank and get a commercial loan.
Thanks
10 rental property loan limits - Posted by Angie
Posted by Angie on July 12, 2002 at 15:03:08:
When did the lending institutions put a 10 loan limit into law? I have located several properties that I would like to put a contract on, and no one will loan me the money because I have 9 loans on rental units and 1 on my homestead. I haven’t tried to purchase anything this year, but did not have a problem last year.
The minute I call any broker, bank, etc. and tell them that I want to buy a duplex,the first words out of their mouths is how many rental properties do you own now?
Is there any way around this, other than seller financing?
Thanks for any help you can give.
Re: 10 rental property loan limits - Posted by Ed Garcia
Posted by Ed Garcia on July 13, 2002 at 12:55:03:
I’m sure we both know that there are a lot of investors out there with more than 10 properties.
What you have done is purchased with a pattern, using a specific lender or loan program that is now maxed out. It’s time for you to get out of your comfort zone and seek out other ways or lenders.
If you’re a holder, then you will have to use multiple lenders. If you buy fix and sell, then the Cadillac way to do it is with a WLOC (Working Line Of Credit) that provides you the funds to purchase the property and fix it as well.
Angie, RE investing and financing go hand and hand, so the more you learn about financing, the easier it will be for you to do deals, you’ll do more deals, and you’ll make more money.
Ed Garcia
Re: 10 rental property loan limits - Posted by Michael
Posted by Michael on July 12, 2002 at 20:33:01:
Is this because all 10 properties are in the same city, county…area? I can understand a lender not wanting too much saturation in a given neighborhood or condo project, but I did not realize there was a limit on the specific number of loans you could have.
Re: 10 rental property loan limits - Posted by Angie
Posted by Angie on July 14, 2002 at 10:06:59:
Thanks Ed, We are holders and have used mulitple lenders. We have not been able to successfully rehab. We like duplexes and currently own six of them. We have located another one that we could purchase with good cash flow, but can’t find a lender. I have a meeting with a small banker next week to talk to him about a commercial loan.
My husband and I have good credit and have never run into this problem before. We have a line of credit with Bank of America of $50,000. We are just frustrated with this limit of 10 loans.
Ed, we really appreciate your input. You are a great guy to respond to everyone’s posts like you do. Thanks so much for your help.
Re: 10 rental property loan limits - Posted by angie
Posted by angie on July 13, 2002 at 09:06:03:
Yes, they are in the same county, but that isn’t the problem. There is a 10 loan limit, regardless of where they are.
Re: 10 rental property loan limits - Posted by Ed Garcia
Posted by Ed Garcia on July 14, 2002 at 11:32:01:
Angie,
I’ll tell you what, if you spend a dime, I’ll take the time. My number is (909) 944-0199.
A commercial loan is not the answer for you to solve your particular problem. That would be the WLOC that I was referencing in my original post. This is not recommended financing for a holder because it’s short term.
In my workshop I will teach the investor how to use the line of credit and then refinance it off the line if they want to keep the property. The benefit for the investor is a FAST close, they can make it look like a CASH offer which will allow them to get a better price, and they can fix up the property adding ad on value for the refi. However in your case you would still have to refinance it off the line, which would put you right back into your problem, if your problem is to get permanent financing.
I think your mortgage company is flaking out, because now to do a deal for you, they have to verify every mortgage and it becomes a lot of work. We both know that they have more then one source so why wouldn’t they just use another one of their sources. Because they’re lazy, and your file requires more work for them then most.
Give me a call Angie and we can chat. Who knows, I may even be one of your next lenders.
Ed Garcia
Re: 10 rental property loan limits - Posted by Michael
Posted by Michael on July 14, 2002 at 08:25:50:
What part of the country is this occuring in? Do they state this is a universal rule that applies to all of us or just in your part of the country?
I guess my best recourse would be to consider blanket mortgages over several properties or start upgrading to larger properties from smaller ones each time I did a transaction.
Re: 10 rental property loan limits - Posted by Angie
Posted by Angie on July 14, 2002 at 15:39:44:
Thanks Ed,
I will definitely call you tomorrow. We met you at the Creonline convention in 2001. We talked to you about your workshop, but have not made it yet. When is the next one?
Thank you so much for your continuous help.
Angie