Buy and Hold Strategy - Posted by Shawn


#1

Posted by Laure on December 23, 1998 at 05:30:17:

Lenders will look at your total debt to worth ratio to continue loaning you money. I have been a “buy and Hold” person. After 10 years of investing, I have my debt to worth down to about 22% over all. Not bad. I have started to do some rehab this year and am on my fourth project now. Banker sure likes the quick rehabs. Of course, there are more sources for your money than a traditional bank, which are a lot easier.

good luck,
Laure :slight_smile:


#2

Buy and Hold Strategy - Posted by Shawn

Posted by Shawn on December 22, 1998 at 21:57:09:

If a person chooses to do a buy and hold strategy and the conventional lenders at some point will start questioning the number of loans the investor is carrying, could that investor refinance multiple properties into one loan to reduce the number of loans that are held, or does the bank look at the total dollar amount in the loans?

Still learning,
Shawn


#3

Re: Buy and Hold Strategy - Posted by Kevin(OK)

Posted by Kevin(OK) on December 23, 1998 at 09:22:49:

Getting one new loan for your rentals could cause a couple of new problems. First, if you ever wanted to sell a few properties for some quick cash, it might be tough to get this approved with the mortgage co. Second, if you fall on hard times and can’t make the mortgage payment you will lose all of your properties, however, if you held the properties with individual mortgages you might be able to control which properties you will be able to keep and which ones go back to the bank.

Just a few thoughts

Kevin(OK)


#4

Re: Buy and Hold Strategy - Posted by Robert McNeely

Posted by Robert McNeely on December 23, 1998 at 08:12:36:

My local bank does not sell it’s loans so they do not care how many I have, however they do limit the total loaned to one person to $750k. Check with a small bank in your area, they may have similar rules. You should be quite experenced by the time this would become a problem for you. At that time a solution should be much easer to determin.