Any one have problems getting financing due to number of units

[James Ivery]

Looking for help. Me and my brother have 12 rental properties between both of us. We are 50/50 partners in an llc the problem is all of the houses are in our individual names. We are getting push back on getting additional loan even with putting 20 or 25% down. We are looking at trying to refi our existing property's into our LLC. But not sure this will solve our problem due to the fact the LLC is in both of our names. Has anyone had this problem and if so what was your solution. Thanks in advance we are in Texas.

[Chris Mason]

Originally posted by @Stephanie P.:

Originally posted by @James Ivery:

Looking for help. Me and my brother have 12 rental properties between both of us. We are 50/50 partners in an llc the problem is all of the houses are in our individual names. We are getting push back on getting additional loan even with putting 20 or 25% down. We are looking at trying to refi our existing property's into our LLC. But not sure this will solve our problem due to the fact the LLC is in both of our names. Has anyone had this problem and if so what was your solution. Thanks in advance we are in Texas.

 In the conventional world, you should be able to do 10 properties and your brother should be able to do 10.  Could be you need a different lender.  In the portfolio world, your borrowing power is about 5M depending on the lender.

 I'm guessing OP and OP's brother cosigned on a bunch of them. As in, 3 are his, 3 are his brother's, 6 are cosigned.

OP, look at doing it just in your name, or just in his. To use my example numbers, you have 9 (below 10), he has 9 (below 10), but on joint mortgage applications you together have 12 (above the FNMA cap of 10).

Lurkers: keep as few names on each individual mortgage as possible. Only "cosign" or add an additional borrower when/if that's a "make or break" condition of getting that loan. Think of this when you have 0 to 2 mortgages, not when you're where OP (if I am guessing right) is at.