We have been purchasing rental properties and our loan guy informed us that there is a limit of 10 fannie(6)/fred(4) loans per name that we can acquire.
We are getting close to our limit and I was wondering what strategies if any are people using to acquire more of these loans?
Is it possible to transfer properties into a Trust or LLC in order to eliminate some of these from our personal names?
We love these loans because they are much cheaper than commercial/portfolio loans that we have seen.
Any information is much appreciated and thanks!
Hey Stephen- I am in the same boat, so I'll keep an eye on this conversation- still lots to learn! One thing we've been exploring is consolidating our mortgages into one commercial loan. You'll pay a higher interest rate and have a shorter amortization, but if you've paid down your mortgages, you might not negatively effect your cashflow. You could tap in to some of that equity and free up your ability to acquire more Freddie and Fannie loans.
Thank you Corby. That is what I have been finding as well. I haven't looked much into commercial loans, but for the most part there is higher interest rates and a balloon.
One thing that I have found true about REI is, keep looking and you will find it!
Thanks again Corby!