All Forum Posts by: Jeff McRitchie

Very cool.  How do you come up with the equity for the additional purposes.  Have you found a way to leverage the equity in your existing properties or do you need a fresh influx of cash for each deal?

Sounds like we are in very similar situations. We have a solid broker who has told us the same thing. I will have to follow up more on the idea of getting a property financed by the LLC. Not sure how hard or easy that is since I have never tried.

I'll send a request to connect and since you are local maybe we can even meet sometime.

From what my broker has told me it doesn't seem like using LLC's as separate entities would work since we would have to guaranty. However another poster above pointed out that technically we could do 10 in my name and 10 in my wife's name. I checked with our broker and he said this will work as long as verifiable income is strong enough for both of us to qualify for the loans on our own. That may be a bit tricky.

Yeah all of them are Freddie and Fannie and yes the Banks hate it.  So much paperwork.

Thinking about trying our first flip to help with the cash side of things. 

We did 5 rehabs and refinanced them conventional afterwards.  We also bought 4 that were in decent condition and financed them conventional.  We also have a loan on our primary residence.  Hence the 10 loans.

Just exploring options of where to go from here.  Some awesome advice here.

Hi Carlos,

Our very first house was so bad that it was recommended to be torn down by several different real estate professionals.  We ended up having to come in with a full cash offer for the bank.   Took us 4 months to rehab and then we refinanced. 

We have done a bunch of different things over the past 4 years. We bought a couple for cash paid for the rehab and then went back and did a refinance. That works really well but you have to come up with a bunch of money up front which was challenging.  In two cases we were able to get virtually all of the money back out of the properties after around 60 days which was nice.

To help pay for stuff we took out a HELOC on our primary residence and a personal line of credit that helps us with the float during the rehabs. On one property took a 401K loan and then repaid it when we finished the rehab and refinanced.

In pretty much all of these cases they wanted between 20-30% down.  If you want to discuss more send me a PM

Thanks Jesse and and Chris.  Those are awesome pieces of advice.  

Chris.  Do you know if you have to file separate tax returns to make this work?  I thought that the underwriters were looking at the number of properties showing interest deductions on our tax returns to meet the 10 financed properties rule.

Thanks Jesse.  I have been thinking that going with a larger multi unit property might be the way to go next.  I have been thinking about that for awhile but am not really familiar with commercial lending.  I guess I have some research to do.

My wife and I started real estate investing about four years ago.  We like the buy and hold philosophy and have done 5 rehabs of foreclosures.  We are in the process of obtaining our 10th conventional mortgage and our broker is telling us that after this we will have reached the Max with Fannie & Freddy.  I am wondering if someone else who has reached this point could give me advice for where to go from here?  All of our properties are currently rented and cash flowing.  Not really excited to sell any but could.  Here are some of the options that we are considering...

1. Go commercial and look at investing in larger multi unit

2. Try to find a regional bank / portfolio lender that doesn't have a rule of 10 properties

3. Switch to flipping using hard money / private lending for awhile

I know there are a ton of seasoned investors here.  Just wondering what you did when you hit this particular point.