$700,000 line but only 5 units you can purchase
4 Replies
Zach Krietemeyer
from Evansville, Indiana
posted over 1 year ago
Hello all
I was wanting to get some more experienced investors advice on this.
I am 27 years old and currently have 11 houses. I have used seller financing, creative financing etc for all of them so far. I’m wanting to really scale out as I want this to be a full time job for me. I spoke with a bank who’s willing to give me a line for $700,000 but I can only buy 5 units with it.
Does anybody have any advice for me on how to scale out and really start gaining more units.
I feel like I could do a lot with 700,000 if it could be used on more than 5 units where I’m at
Or does anyone have any other methods of gaining more units with little money down
Please advise
Thank you
Zach
Jake Stuttgen
Rental Property Investor from Minnesota
replied over 1 year ago
Hey @Zach Krietemeyer ! Great progress thus far man!
So with the $700k, couldnt you go ahead and put 20-25% down on about 10+ SFH? Or what you could do is go after an apartment building, putting $700k down would get around $2.5m building
Zach Krietemeyer
from Evansville, Indiana
replied over 1 year ago
@Jake Stuttgen those were my initial thoughts as well, but when I spoke with bank she said I could only do 5 units with the $700,000
Jake Stuttgen
Rental Property Investor from Minnesota
replied over 1 year ago
@Zach Krietemeyer Are you interested in going after a multifamily deal (5+ units)? At that point, you could speak with a commercial lender and they'd likely help you get a deal done that'd help you achieve your goals.
I also am working on a large apartment deal currently that I am putting a big chunk of Line of credit into.
Would love to discuss this stuff with ya! Feel free to send me a message
Zoran Stanoev
Real Estate Broker from Chicago, IL
replied over 1 year ago
Is the 5 unit limitation because of their lending limitation? If that's the case, have you tried other lenders? What about doing a cash out refi? Or finding a portfolio lender and doing a refi for all 11 as a package? Or maybe even selling all 11 and doing a 1031 exchange? I'm throwing out ideas, sorry if you've considered these already. Good luck