How to continue to get approved for mortgages?

Question

Hi guys, Just watched Brandon’s podcast on how to buy multiplexes.

Question is, how do you continue to refinance with banks and are able to continue to buy homes?

Say I buy 1 duplex today and have it rented. I take up a mortgage for it

Next year I buy 2 duplexes. I take up a mortgage for it.

Won’t I get to a point where banks won’t lend me any more money?

How did Brandon/y’all overcome this hurdle?

Even with the BRRR strategy, there’s a refinance component to it.

Thanks

Vaibhav Puranik · Answer

@Cameron Lim I have experienced the first transition as I have more than 4 properties. I have yet to experience the portfolio lender transition.

I invest local as well as remote. I have properties in TX and CA.

You can learn more about portfolio lenders by googling about it. Here is one such link - https://www.investopedia.com/terms/p/portfolio-lender.asp#:~:text=A%20portfolio%20lender%20is%20a,lender%20who%20services%20the%20loan.

Cameron Lim · Answer

@Vaibhav Puranik thank you.

Cameron Lim · Answer

@Vaibhav Puranik

Thanks Vaibhav. I take it you’ve experienced this yourself?

What is a portfolio lender?

Do you invest locally in your city or do you invest in different states?

I’m pretty new to this but definitely want to invest!

Vaibhav Puranik · Answer

Hi @Cameron Lim, as long as your net worth is increasing, banks will lend you money. The type of banks lending you money will change, but you will be able to find a bank that will lend you money.

Very big banks like Bank of America, Chase etc. won't lend you money after 4 properties. Most other smaller banks will lend you money upto 10 properties. After that you will have to go to a portfolio lenders to get money.