Rental Property Investor · Atlanta, GA · Member since 2014 · 10 posts · 0 votes
Greetings BP,
I’m currently looking to purchase another investment property at 65k. But I have 4 properties mortgaged with the lowest balance being 25k. Every bank that I’ve talked to will not allow a 5th mortgage. I can buy the property 65k in cask OR pay off the 25k property and put down 25% on the 65k property to fnance. Any suggestions? Thanks
Keep calling banks. Try a portfolio lender. Many banks have a four loan limit (some even less), but that is just that bank's policy (also called an "overlay"). You just need to find one that will do more (like ten).
Keep calling banks. Try a portfolio lender. Many banks have a four loan limit (some even less), but that is just that bank's policy (also called an "overlay"). You just need to find one that will do more (like ten).
Leverage is best since it allows you to use other people's money and it also allows you to move faster to break even...where the cash you put in is =< the cash you get back.
Also, keep calling other funding sources. If you belong to a REIC, you should be able to find a lender that will give you that 6th+ loan. If you don't belong to a REIC (shame on you) ...join one now.
Call around for more lenders or brokers that do the max of 10 financed properties per borrower. Most around here stick with 4 as well, but I found 2 that will go up to 10 per fannie guidelines. I just did my 5th this morning at 75% ltv.
I’m currently looking to purchase another investment property at 65k. But I have 4 properties mortgaged with the lowest balance being 25k. Every bank that I’ve talked to will not allow a 5th mortgage. I can buy the property 65k in cask OR pay off the 25k property and put down 25% on the 65k property to fnance. Any suggestions? Thanks
Hello Lloyaal,
You have to find a bank that doesn't have any OVERLAYS. Fannie allows 10 mortgaged properties so this is very do able.