OfflineI live in California and I have talked to two lenders and one real estate agent who have told me that banks will not give you a loan if you are carrying more than 4 mortgages...and I currently own 4 investment properties and have good credit!
I contacted a community bank and at first it sounded promising, but then they failed to follow-up with me, probably due to the change in rules. I am still trying to follow-up with them to find out exactly what happened.
I am currently working with a mortgage broker who is doing a "feasability study" to see if he will finance me based on my rental income for the last three years. I am keeping my fingers crossed to see if this works out since my rental income does not look consistent for the last four years.
I have a coworker who works in real estate who told me that several people are creating LLCs to get around the four property rule, I am interested in finding out if this will work for me and help me to get out of my current real estate rut.
My question is whether anybody has recently encountered this problem and if they have created an LLC or discovered another creative solution to circumvent the four property rule required under today's lender guidelines?
I want to bring this back up for discussion. I'm looking at this scenario down the Road.
I'm waiting for my D&B number to establish my LLC's credit (thank you Tammy http://www.deangraziosi.com/real-estate-forums/financing-and-credit/5696...)but I hear it's hard to get a mortgage loan in the LLC.
How are people getting around the 5 mortgage limit?
Owen Properties, LLC
There have been threads on this in the past but i don't have those particular ones bookmarked.
I know that this was a dilemma that Tammy had at one time. I think that she finally figured out a solution.
If we keep bringing it to the top, she, or someone else who has conquered this will chime in.
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Thanks Karen, I'll keep bring this back up.
Owen Properties, LLC
Just in case you haven't tried using Matt Larsen's approach to finding lenders, check this out! This strategy allows investors to build a real estate cash flow empire using the same funds over and over again!
FIND A BANK – NOW!!!
Step 1
Go to www.YellowPages.com
Step 2
In the first search box, type in “your city & state” and in the second search box, type in the word “bank”.
(this will be the city & state you own your property OR you want to buy a property)
Step 3
At least 25 pages of banks will come up in your city and the surrounding area. Write down all the smallest banks or banks with the word “community” in the title. If you don’t recognize the name of the bank then write it down along with the phone number.
Step 4
Make sure you write down at least 20 banks with their names and phone numbers.
Step 5
Call the bank and ask for someone in the mortgage department. If they ask you if it is for a commercial loan or residential loan then tell them it is a “commercial” loan. If after you start talking to the residential loan officer (the commercial loan officer and residential loan officer might be the same person) they may refer you to the commercial loan officer which is fine.
Step 6
The first thing you say is this:
• I am a real estate investor looking to buy property in the local area.
• I am trying to find a local bank and I have a few questions to ask over
the phone to see if there is a good fit.
• Ask the “10 Questions To Qualify A Bank” and take notes on each bank.
• Within 45 minutes you will have about 3-6 banks to work with.
• Your confidence will be through the roof after about 6-8 phone calls.
Remember, this is a numbers game. Some banks will tell you what you are trying to do is impossible and then the very next phone call you might find a bank that says “ok, we can do that for you”. Also remember to call the banks that say “no” back every 3 months because things always change within a banks’ own financial statement. It is true that banks are in the business of loaning money but, every bank goes through stages where they can take more risk/ take less risk. It’s a pendulum. Never give up.
This process has made Matt Larson a millionaire and it can work for you as well. Get it done!
__________________
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Thank you very much dccapital!
Owen Properties, LLC
We don't have limits at Private Money Bank. If you have a deal under contract, we welcome the opportunity to finance your next investment. Please visit my website at www.privatemoneybank.com/bbell or http://pmbintl.com/685363 for more information.
Ask Mr. Graziosi for a recommendation (he is an active affiliate for Private Money Bank)
Bruce Bell