"Buy And Hold" - 10 Property Limitation?

I am being told by several mortgage brokers that no matter what your net worth/credit score/income, once you have more than ten 1st mortgages reporting on your credit report, you cannot get any more conventional loans (IE: Decent Rates).



Truth to this? Work-arounds? I see investors with way more than 10 properties. Are they paying higher rates (commerical prime +)?



JohnCl

Comments(10)

  • rmdane20007th December, 2007

    They are using a non-conventional mortgage. With good credit/income you should be able to find a lender that will give you terms that are pretty close to conventional. It will likely cost you a point or something, but they are out there. You could always buy or contract I guess...maybe if you have a wife have her start to take the properties in her name?

  • LeaseOptionKing7th December, 2007

    There is another obstacle in Georgia: You cannot have more than nine rental units. Once you hit the tenth (not properties, but units), you have to post a bond. This only applies if you hold security deposits.
    [addsig]

  • cjmazur7th December, 2007

    it may cost some, but you can transfer each property in a entity. Esp. if the are commercial 5+ unit building.

  • linlin8th December, 2007

    Even if he transfers the property the mortgage is still in his name.
    What you can do with conventional lenders is to have the account prepare a report that links each loan to the property it is covering.
    That was what a bank recently told us to do for a client and they were approved and he already had 10 loans on his credit report

  • JohnCl9th December, 2007

    linlin,

    Do you know the name of the lender?

    JohnCl

  • Stockpro9910th December, 2007

    There are lenders that will let you have more than 10 but the main thing is that they will want you to have 10% down.

    WAMU used to have a program that would work for you but you need to check constantly as there is a hi rate of change in the lending market with programs going and coming all the time.

    I am starting to see some that are stated stated again after disappearing for a few months.
    [addsig]

  • JohnCl10th December, 2007

    StockPro99,

    I forgot to mention that theses are rate/term refinances at no more than 80% of value. Varied seasoning (3 months to 2 years). SIVA.

    In other words, I have the acquisition & repair money lined up. Just need the takeout loan for longer terms holds.

    JohnCl

    [ Edited by JohnCl on Date 12/10/2007 ]

  • JohnCl23rd December, 2007

    matx,

    More than 10 properties?

    JohnCl

  • cjmazur27th January, 2008

    I did a google search and found a ton of hits including:

    http://www.thelpa.com/lpa/creditreportingfaq.html

  • haynesm8th February, 2008

    I sent a request to the 3 big credit agencies asking for information on how I could report a person for being late. Lo and behold, the response to me was to send me my credit report on myself. Nothing about how I report someone else. I tried 2 or 3 times to find out how to report this dead beat and never got any answer. One question?? Is The Landlord Protection Agency connected to one of the 3 big agencies or are they their own group

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