Financing Cheap Houses

[Michael D.]

I've been purchasing a number (4 so far) of cheap houses (<$50k) with cash, and now I'd like to get my equity back out of them to buy more. I'd also like to figure out a plan for being able to do this smoothly in the future. By a cheap house, stabilize it with repairs and a tenant, and get all or most of the equity back.

Regular residential mortgages don't seem to make sense, because I can only seem to get 4 of them and anyway the costs are so high relative to the amount of the loan.

I can't be the only one. Where should I be looking for money?

Thanks,

Michael

[Craig Brouillette]

Call around to some local banks and ask if they do a multiple collateral mortgage (aka stacked collateral). I've used banks that will do one loan with several different properties. It's set up with the loan in your business/LLC name and you personally guarantee the loan. You will have to deal with a commercial/business banker most likely, and that's who I would ask for when I called. Seems like it will work for you, 1 mortgage on 4 properties.