In over my head???

[Scott Karg]

I have purchased 4 rental properties in the past year or so. the latest I just closed on this past week.
So far the ones I have purchased cash flow VERY well. My personal threshold is the property must flow a minimum of $300 a month on hard money. None of mine are that low.

Anyway, they are all financed with hard money right now. I do own another free and clear. My biggest note is $70K. I have a great relationship with a lender who gives me 12.5%, and 18 month terms, with one point to extend for 12 months. he gives me favorable terms because I only charge him half a month rent for placement fees via my tenant placement business.
2 of the properties are financed through him. I have two others that are financed via hard money from friends, they have no balloon due date, and since they are for $22k and $30K and flow great, my plan is to just pay those off.

I have not tied to refi yet. My once spotless credit is not fair to good. My wife and I got laid off in 2008 and have since started out own businesses.

I am asking for thoughts and advice. After the latest property is rehabbed(starting tomorrow) and rented, I am going to step back for a bit and do what I can to be able to refi those properties, and my personal property.

[Des Shei]

i would recommend you take a brief pause and get things under control. work on a plan to refinance those units into more stable financing. There's nothing worse than being overly ambitious and over-leveraging yourself. I will be purchasing two more units myself within the next 4 months; once those are done will step back and re-evaluate my goals.