How Do I Refinance Out of 10 Properties?

10 Replies

I am currently in the process of acquiring 10 investment properties

that will be in my name and under my SS#.
All of them will have 20% or more equity.

I've read that there are either banks or individuals who will refinance my loans

into one commercial loan, (or private loan)...

Has anyone done this? 

Is this even possible???

I have looked into it. That being said the loan amount are much worse than conventional 30 year loans. Commerical are at higher rates and are usually 5-10 year loans. 

The residential loans are much cheaper. You would need to show 2+ years of rental income on your taxes for each property. Also many commercial lenders are not interested in adding 1-4 unit properties into their commercial portfolio.

I had the same problem with 5 mortgages.  For traditional banks the magic number is 4.  Once I sold one of my properties I have not had any problems. (Knock on wood) 

Perhaps call quicken loans or maybe Aimloan to see if they will.  Don't put any money down for appraisals until it is in writing that the loan is approved.  I have read that portfolio Leanders are a good source but I have never contacted one.  Sorry I am not much help.  I just wanted to express what I went through.  I tried 3 times to refi with 5 units and was unable to until I sold one. On the 3rd try I had Greanlight loans (online service part of Nationstar) approve me but would not let me do a 20yr.  They said my debt to income ratio was not to new standard.

Blanket loan... however they are very rare nowadays

So you can do it with 4 or FEWER properties? Who at the bank does this? 
Is it the commercial or residential side of things?

Also, if this is the case, why don't more investors get 4 properties, refinance, acquire 4 more, refinance, and repeat. They could get 40+ instead of 10.

I don't understand the question.  Your post says you're purchasing 10 properties and your title says how do I refinance out.  What are you doing?

Fannie and Freddie have limits on the number of properties you can finance through them.  If you want to do all 10, you must use a commercial lender.  A blanket is a possibility, but there are a lot of maybes in your scenario and that could be a more expensive way to go than just financing each as an individual.

Originally posted by @Evan McMullin :



Also, if this is the case, why don't more investors get 4 properties, refinance, acquire 4 more, refinance, and repeat. They could get 40+ instead of 10.

Because if you buy 4, refinance and buy 4 more, you have 8, and the limit is 4 mortgages.

Originally posted by @Mike F. :
Originally posted by @EVAN MCMULLIN:



Also, if this is the case, why don't more investors get 4 properties, refinance, acquire 4 more, refinance, and repeat. They could get 40+ instead of 10.

Because if you buy 4, refinance and buy 4 more, you have 8, and the limit is 4 mortgages.

 Mike is correct.  I am referring to residential loan.  I spoke with Aimloan and they said they will carry up to 10 loans.

 I believe the Fannie Mae and Freddie Mac standard are set at 4 loans.  Most investors have to go into commercial loans once you tap out all the residential loan resources.

@Brian Johnson   and @Mike F.   the limit for conventional financing is 10 mortgages. There are few lenders that go this high, but it is possible. 

I'm also interested in this topic.

So what financing options are available once you hit the 10 mortgages limit?

(A) get a blanket refinance through a commercial loan, so you can payoff the 10 mortgages and then buy 10 more.  But from the comments above, this is difficult.  What if you already have a couple of years of rent roll of these 10 properties?

(B) keep the 10 mortgages, and get commercial loan for your next purchases. How likely is this?

(C) ???

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