Best way to keep purchasing

[Tom Camarda]

Greeting BP community

Question for you all. I currently only qualify for conventional mortgages via Freddie Mac, which caps my loans at 6. I currently have 6 properties (including my primary) so I have reached my limit... Because of a better W2 income this year,  I will qualify for 10 loans via Fannie after filing next years taxes but I want to keep buying now... 

What do you consider to be the best next step to continue to acquire? (I'd love to get off the conventional mortgage shnide altogether)

Let me preface by saying that I work in film production which is a very time consuming job with 12-14 hour days 5 days a week, usually in remote locations, so I'm not doing a lot of driving for dollars..

Some ideas I've been kicking around are:

1. Start a Corp, deed 2-3 props over to it thereby opening up another 2-3 "slots" for conventional mortgages

2. Portfolio loan

3. FSBO's

4. Subject To's (this is a bit outside my wheelhouse but I'm learning more about it...)

Thanks for the input!

Tom

[Joe Villeneuve]

The 4 "options" you mentioned all have problems based on how you think you will use them:

1 - Deeding the property to a different owner won't clear the loan slots.  The loan stays with you.  It might trigger the "due on sale clause" though.

2 - Portfolio Loans sound great, but this doesn't improve your debt to Income ratio...just the number of loans (maybe).  Usually, the biggest hurdle is the D2I...not the number of properties/loans.

3 - Not sure how taking this route helps...or even why you bring it up as a solution

4 - S2's would work, but they only work with certain types of sellers...and most sellers wouldn't work.

You have two solutions that will work though:

1 - Partners with credit...they get the loans

2 - Start using cash.