4 mortgages maxed out

I have five mortages on my six rentals and now cannot get anymore loans due to the Fannie Mae limit of 4 mortgages per person. I have a $100K LOC for down payments, plenty of good deals here in SLC and I am ready to get back in the market after staying out during the bubble years. I called 15 banks (mortages and commercial guys) here in Salt Lake City today and only one person would even commit to check if they can consolidate my loans into a commericial loan. I have real equity of $900K on only $450K debt and have $3K/Month cash flow on the properties. I have a great credit score and also own my own home.

I would think that someone in my position would be able to continue purchasing real estate since I am obviously not speculating and I have shown that I can create profit. This is crazy because I actually want to buy homes and reduce the inventory which is causing this huge financial collapse.

Any loan companies, contacts or other tips would be appreciated!

Darren

Edited: 06/26/2010 at 07:07AM

Ben Carmona

· Wentzville/St. Louis, Missouri

359 posts
14 Influence
1 Award

Icon_minipost Jan 30 '09, 05:14 AM

Hi Darren,

You're probably not asking the right questions of the right people at the banks. I make these calls nationwide almost every day and I cant tell you how frustrating it is to be transfered to this person, then that person, then over here, and over there. It usually takes me a couple days to get the right person on the phone. This is coming from someone who knows exactly how to present the questions it's just lack of knowledge on the bank employees end.

Anyway, these loans are possible. There are banks that have a presence in SLC and in other markets are making these types of loans. I dont why they wouldnt be doing them there.

Edited: 06/26/2010 at 07:07AM

Ryan Pyle

Real Estate Investor · Toledo, Ohio

123 posts
1212 Influence
3 Awards

Icon_minipost Jan 30 '09, 06:04 AM

$3k/mo cash flow on $900k equity = 4% ROE. Time to sell/exchange your properties and put that equity to work!

Edited: 06/26/2010 at 07:07AM

Darren Larsen

Real Estate Investor

8 posts
29 Influence

Icon_minipost Jan 30 '09, 08:56 AM

I think I stated my equity wrong. The homes are worth 900K and the loans are 450K so the equity is 450K. Sorry about the goof!

Edited: 06/26/2010 at 07:07AM

Curt Davis

Wholesaler · Memphis, Tennessee

1108 posts
6055 Influence
7 Awards

Icon_minipost Jan 30 '09, 09:32 AM

Darren,

If you would consider buying homes in Memphis TN I have a loan product that will allow you to buy properties with about $5K out of pocket per home. This loan will not go on your credit report. You will get positive cash flow and instant equity. Let me know if your interested.

Edited: 06/26/2010 at 07:07AM

Curt Davis, buyMemphisnow.com
E-Mail: crtdavis@gmail.com
Telephone: 901-881-0552
Website: http://www.buymemphisnow.com
Full Service Real Estate Investing in Memphis TN

Bill Hamilton

· Meridian, Idaho

11 posts
4 Influence

Icon_minipost Mar 22 '09, 01:09 PM

Depending on how long you have held these properties you should be able to get a blanket loan. The rates are going to be a little higher most likely but it might still work for you. Try Zion's Bank in your area. Also, Fannie has increased it's limit back to 10 properties. Get a broker and tell them to try Flagstar.

Edited: 06/26/2010 at 07:40AM

Rich Weese

Real Estate Investor · sioux falls, South Dakota

4294 posts
43789 Influence
15 Awards

Icon_minipost Mar 22 '09, 01:16 PM

curt,
I'm interested in these properties and funding. Do you also have access to larger apt properties or bulk sfrs? Lets; chat.

Edited: 06/26/2010 at 07:40AM