How did you advance past 5 properties? any success tips?

Question

Hello All,

Its been a while since i have bought a property for myself or investment, lately i have been on the search for another property as i am planning on moving as well purchase another investment property. I had 7 properties up till a few months ago, i downsized to 5 after selling 2 non-performing rentals, but since its been years since i have purchased a house the strictness of purchasing has changed a lot. I posted something similar to this in a conversation on another post, but i wanted to make a post separate to get more input. Currently i have a great credit score, but because i am no longer in the military and now working fairly new job its been extremely difficult to get another loan. I have taken some advice i read about and contacted local banks, not the big name banks, but most just plain will not touch me period due to how many loans i currently have.

I have had a few offer me loans, but they would only offer me a loan under "NON-Investing" and the interest rate they offered me seemed to be a bit high or they asked for 25% down plus points. The only companies i have found that would offer me an investment loan at this moment was in the 6%+ range with 20-25% down, which just seemed like a rip-off...

Just looking for more advice, i want to continue to invest as i gain more knowledge in real estate investing, because id like to increase my passive income to be FI, just seems like the new limits have put a wall in place.

Kevin Hunter · Answer

@William Huston, those rates are competitive now.  They have risen consistently over the past 18-24 months.  The way I have gotten past five is by sticking to my numbers and being patient, but relentless.  It can be a bit demoralizing to feel like you are constantly running the numbers only to find the interest rate being too high and killing the deal, but it is just reality.

Jaysen Medhurst · Answer

@William Huston, just respond to your other post.

FYI: The terms you cite above for an "investment loan" are reasonable. Would be great to get a lower rate if you can find it, but don't make yourself crazy chasing an eighth of a point--better to establish a great relationship with a bank that can help you grow your portfolio.