If you are financing in your name you will start getting resistance after 4-5 houses. This is why you use an llc or corporation with a strong P/L statement to hold and finance your properties through. And for asset protection.
It has to do with cash flow. If you've got good cash flow, your DTI's stay low, banks typically don't fuss till you get up to 10 or so. Or, there's dollar amounts, too, that some of them have, like WAMU fusses when you get over like 1.5 million with them.
I think different lenders have different hidden policy in regards to this subject. Banks are very sly with policy. I think as investors we must build many relationships with many types of lenders and keep as much libility as we can off our butts.
Hi:
If you have good credit rating, you have money for good downpayment,
have positive cash flow and have
different lenders, you can get away
with 10 houses. This is where I am
right now. As someone rightly remarked
above try different lenders. My two cents.
sayana
Quote:
On 2004-04-18 17:22, sayana wrote:
Hi:
If you have good credit rating, you have money for good downpayment,
have positive cash flow and have
different lenders, you can get away
with 10 houses. This is where I am
right now. As someone rightly remarked
above try different lenders. My two cents.
sayana
Hey just noticed you're from Taylor, that where I grew up...
Everyone else thanks for the advice. I am going to look into an LLC, I have 2 right now being renovated and another I am closing on within a week to start a rehab. Plan on renting them out, and...I'm just not ready to stop yet...that's where the question came in. Thanks again!!
Quote:After about how many houses does it start to get harder and harder to finance any more?The answer is as many as it takes for your creditworthiness to erode to the point where lenders don't want to give you any more money.
I know that may seem like a flip answer, but if your investment strategy is to acquire negative cash flow rentals, then it may only take one or two properties for the lender's to start saying no.
If your investment strategy is to acquire positive cash flow properties and you show a track record of increasing cash flow, reducing debt and increasing your equity positions over time, then the lenders may never say no. Mine doesn't. My lender says they will fund as many deals as I can afford.
This is not to say that lenders will tell you that they will give you only four loans (e.g., Countrywide Home Loans), or that you can only have one FHA loan (for your primary residence), or that you can not have more than ten "conforming" loans in your name regardless of the number of loans from a single lender. These limitations are all true. You have to cultivate a non-conforming lender to overcome some of these limitations.
My Sainted Grandfather had a rule. Never let a Banker pick up a check. Always offer to vet him into the Country Club. When he runs for office or wants to run a gathering of any kind. Second his motion and do it fast.
Query your troops especialy if you are dealing with irregulars. Are there any Bankers present? If so have them escorted to the rear. Logistics is where they belong.
There was a time when many of us were picking up properties in large amounts. All we ever did was just take over the loans and most of us formed operating entities. Construction Companies were my favorite titling. When Macdonald went bust we gathered in almost 300 of his single family houses. The bank holding that master construction loan was so delighted I thought the President was going to kiss me. He settled on my Secretary, Charming girl, good choice.
Here in the Estes Unique you can pretty well do anything you want. Just set up a few little companies. Limit them if you are nervous if not just go for it and work on the position that any attacks you can handle.
If you are at profit almost all organizations will work with you. Never be timid with a Banker, most of them have the fear of living in their psy and thats why they are in banking. The presance of large sums on deposit make them feel a little more secure.
Those of you that arrived here from foreign clime do not have that problem. You have seen the eco systems go splat and in that time those at cause climb out of the mess and get on with it.
So be you. The only time I am really timid is after the second slap. I know my tecnique is not working. So I change my approach. I buy them a drink. Remark on their youthful appearance and hope they don't recommend me to their www.mothers.I really get upset when someones Grandmother address me as "Sir."
Now I hope this has been helpful. Remember if you are in the field of individual investing you are different. You are not ever going to be really happy in a highly structured invironment.
As a child Fighter Pilot I always remember that lovely West Point General with the shiny boots. Gave me hell for polishing my little fighter airplane. and putting all those little rear view mirrors on it. I tried to explain that I liked the additional 10 miles per hour of speed and the mirrors made me feel better cause I really hated to be snuk up on and shot at. I went to his funeral. He should have followed my example. No the boots did not fit.
If you are financing in your name you will start getting resistance after 4-5 houses. This is why you use an llc or corporation with a strong P/L statement to hold and finance your properties through. And for asset protection.
It has to do with cash flow. If you've got good cash flow, your DTI's stay low, banks typically don't fuss till you get up to 10 or so. Or, there's dollar amounts, too, that some of them have, like WAMU fusses when you get over like 1.5 million with them.
I think different lenders have different hidden policy in regards to this subject. Banks are very sly with policy. I think as investors we must build many relationships with many types of lenders and keep as much libility as we can off our butts.
Hi:
If you have good credit rating, you have money for good downpayment,
have positive cash flow and have
different lenders, you can get away
with 10 houses. This is where I am
right now. As someone rightly remarked
above try different lenders. My two cents.
sayana
Quote:
On 2004-04-18 17:22, sayana wrote:
Hi:
If you have good credit rating, you have money for good downpayment,
have positive cash flow and have
different lenders, you can get away
with 10 houses. This is where I am
right now. As someone rightly remarked
above try different lenders. My two cents.
sayana
Hey just noticed you're from Taylor, that where I grew up...
Everyone else thanks for the advice. I am going to look into an LLC, I have 2 right now being renovated and another I am closing on within a week to start a rehab. Plan on renting them out, and...I'm just not ready to stop yet...that's where the question came in. Thanks again!!
JB
[addsig]
Quote:After about how many houses does it start to get harder and harder to finance any more?The answer is as many as it takes for your creditworthiness to erode to the point where lenders don't want to give you any more money.
I know that may seem like a flip answer, but if your investment strategy is to acquire negative cash flow rentals, then it may only take one or two properties for the lender's to start saying no.
If your investment strategy is to acquire positive cash flow properties and you show a track record of increasing cash flow, reducing debt and increasing your equity positions over time, then the lenders may never say no. Mine doesn't. My lender says they will fund as many deals as I can afford.
This is not to say that lenders will tell you that they will give you only four loans (e.g., Countrywide Home Loans), or that you can only have one FHA loan (for your primary residence), or that you can not have more than ten "conforming" loans in your name regardless of the number of loans from a single lender. These limitations are all true. You have to cultivate a non-conforming lender to overcome some of these limitations.
My Sainted Grandfather had a rule. Never let a Banker pick up a check. Always offer to vet him into the Country Club. When he runs for office or wants to run a gathering of any kind. Second his motion and do it fast.
Query your troops especialy if you are dealing with irregulars. Are there any Bankers present? If so have them escorted to the rear. Logistics is where they belong.
There was a time when many of us were picking up properties in large amounts. All we ever did was just take over the loans and most of us formed operating entities. Construction Companies were my favorite titling. When Macdonald went bust we gathered in almost 300 of his single family houses. The bank holding that master construction loan was so delighted I thought the President was going to kiss me. He settled on my Secretary, Charming girl, good choice.
Here in the Estes Unique you can pretty well do anything you want. Just set up a few little companies. Limit them if you are nervous if not just go for it and work on the position that any attacks you can handle.
If you are at profit almost all organizations will work with you. Never be timid with a Banker, most of them have the fear of living in their psy and thats why they are in banking. The presance of large sums on deposit make them feel a little more secure.
Those of you that arrived here from foreign clime do not have that problem. You have seen the eco systems go splat and in that time those at cause climb out of the mess and get on with it.
So be you. The only time I am really timid is after the second slap. I know my tecnique is not working. So I change my approach. I buy them a drink. Remark on their youthful appearance and hope they don't recommend me to their www.mothers.I really get upset when someones Grandmother address me as "Sir."
Now I hope this has been helpful. Remember if you are in the field of individual investing you are different. You are not ever going to be really happy in a highly structured invironment.
As a child Fighter Pilot I always remember that lovely West Point General with the shiny boots. Gave me hell for polishing my little fighter airplane. and putting all those little rear view mirrors on it. I tried to explain that I liked the additional 10 miles per hour of speed and the mirrors made me feel better cause I really hated to be snuk up on and shot at. I went to his funeral. He should have followed my example. No the boots did not fit.
I think you all get my meaning.
Cheers Lucius
8-)