Limits On The Number Of Mortgages And Debt Ratio
I read the thread on Debt Ratio Calculation and wondered is there a limit to the number of mortgages that a person can have?
Is this limit overcome by creating a LLC entity to control rental properties.
Wouldn't an LLC protect a person's personal credit rating from a bad debt ratio when growing rapidly.
Thanks,
Yes and No......
If you walk into your local bank, they may very well say that you can only have 5 homes....after that they won't qualify you for more.
So what do you do? Walk into a different bank.
If you've bought right, you'll have MORE disposable income and more equity and a higher net worth than when you started. They'll see your financial statement and say "Wow!, We'd love to lend you money.....you can buy up to 7 properties"......
then you change lenders again.
Experience and Success will be noticed. Pretty soon you'll have banks calling you personally and begging you to borrow more of their money.
There are people that can write out (unsecured) checks for millions of dollars at a time because the lenders know them.
That is the least of your worries. Get in there, buy low, sell high, and get a cash flow and you'll be fine.
Thanks!