HELP!!! My financial advisor said I'm over leveraged

[Idris Haroon]

So I just got off the phone with my financial advisor and he said I'm doing well but he's concerned I'm over leveraged on real estate. He's concerned that if we experience another recession that I will be stuck holding the bag for all the mortgages on my rental properties. Is anyone else concerned about this? If so how are you planning ahead to make sure this isn't a problem if we experience another recession and your tenants cant pay rent?

Thanks

[Dan M.]

Tell him no problem and drop him and his fees, then you wont be leveraged as bad. I'm 90 percent serious about this. For a quarter of what your paying him hire me and I'll tell you twice as frequently you don't have enough money. 

You could sell some of your properties to be less leveraged and make less cash flow.

You could really vet your tenants to make sure they don't screw you over.

You can hold ample reserves of cash for the "what if" scenarios.

Get a HELOC if you don't have it already and use it if you have to.

Take out a blanket mortgage and tap some of your equity to pay a property or two off free and clear. Stick those in a separate LLC so if the world does come crashing down you won't have to lose those in theory.