limit on #of loans? - Posted by Todd

Posted by Nate(DC) on March 10, 2002 at 20:25:11:

It also depends on the size of the bank and whether the bank is state-chartered or federally chartered.

Just to give you an example, I know that in Tennessee, state chartered banks can have no more than 15% of their total capital lent to any one person or company at a time. So if your bank had total capital of $10 million, it would be limited to lending no more than $1.5 million to any one borrower.


limit on #of loans? - Posted by Todd

Posted by Todd on March 07, 2002 at 23:26:05:

Although i am doing some creative stuff now, i still can’t think of a better place to invest my money than real estate. I have a good cash flow and reserves and wanted to invest my excess cash back in RE. The question is, will the banks limit me on the number of loans i can get? Anyone experienced a cutoff at a certain number? Or on the other hand have banks still make loans with a large number of loans in place? Thanks for any input!

Re: limit on #of loans? - Posted by Matt_MPD

Posted by Matt_MPD on March 08, 2002 at 01:24:29:

Here in IL, and with one lender that I use regularly we have a cutoff of 1.9mil. This is what they term as their “legal lending limit per entity”. This doesn’t mean that I can’t borrow more from other lenders, nor does it mean that I can’t use my own name or another company name to borrow with but they limit it to 1.9mil per entity. After that, it’s really what your credit and the deals will allow them to invest in safely. I don’t know if this is state law or even federal as I’ve never bothered to ask. Next time I talk to my loan officer I’ll ask and see what he says.

If anyone knows if this is a federal lending limit (which I think more likely) please feel free to chime in!

Matt Yohnk
MPD Investments Inc.

Re: limit on #of loans? - Posted by RC

Posted by RC on March 08, 2002 at 22:32:34:

I believe that it is simply a matter of lender policy. I have found that some have a cut-off number ($$) and others have a cut-off for number of loans regardless of the amounts. Many banks will say you can have no more than three current loans with them (per entity… although they try not to disclose that part)