Posted by Wayne-NC on March 25, 2001 at 11:18:56:
I have several mortgages also with strong cash flow on the properties, however, in calculating the DI ratio the lender uses 75% of the gross rent then subtracts the dept payment. This they say accounts for vacancy and expenses. Anyway, it puts me at a break-even or a loss. There is my limit. As for six, I guess that depends on the lender. I have 5 mortgages and 3 secured LOC’s.
Number of loans I have before someone says no - Posted by TPK-DE
Posted by TPK-DE on March 24, 2001 at 19:02:48:
I have been working with a mortgage broker that will do six mortgages for investor loans and the no more. I have done 4 so far and working on 5 and looking for 6. I also know that all of these loans are going to affect my credit some how. So, what will happen? Will I get cut off for a while? If so what is a while? Will other lender just want to see more documentation? The properties I am purchasing all are way below appraisal and are rentals that have good positive cash flow, plus I have a good paying full time job.
Please advise,
Tom King
Re: Number of loans I have before someone says no - Posted by Ed Garcia
Posted by Ed Garcia on March 25, 2001 at 16:29:17:
TPK-DE
Nobodies going to cut you off, you’re just going to change Brokers.
I almost feel like having you tell your broker to take a look at his/her business card. Broker, means Broker. They can broker to any lender, so why would they tell you that you’re out of business after 6 loans. Your cost factor might go up and it has nothing to do with just having 6 loans. But for now I would just work with the broker on number #5 as you approach # 6 make sure you duplicate your LOAN PACKAGE so that you can be ready to move pronto.
TPK, I’ll be here, you can come and I’ll help you.
Ed Garcia