Question for Investors. Reached a max point!

kabirDecember 11, 2013

How do you move forward after you have reached maximum limits of owning 10 properties.
Me and my partner are in business of rental properties. Houses are 2500 sq ft plus and 2000 or later built. Location is North East Ohio. We are about to reach max limit of 20 properties( 10 in my name and 10 in his). We have more than 50 percent equity in all of them, but still hold mortgages. All properties have excellent positive cash flow. We buy high end foreclosures(high end for this area!!) from sheriff sales and completely upgrade then before renting them out. Fannie May doesn't allow more than 10 properties. W have an LLC but cant finance or insure under its name for obvious reasons.
How to take it to next level. Any real estate or financing gurus here?

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What does your tax people say? Or your lawyer?

    Bookmark   December 11, 2013 at 5:39PM
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Tax people or lawyers have nothing to do with it!!!

    Bookmark   December 11, 2013 at 10:26PM
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What do you mean by "FNMA doesn't allow more than 10 properties?"

    Bookmark   December 12, 2013 at 8:15AM
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Pay off a property and then you can get another one.

    Bookmark   December 12, 2013 at 2:53PM
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Get other financing.

banks, private or portfolio lenders, etc.

    Bookmark   December 12, 2013 at 5:53PM
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Finance with a different lender.

    Bookmark   December 13, 2013 at 10:23AM
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As far as I understand, loan to value ratio for Fannie Mae properties is 70%, so if you have properties at 50%, pay off some, so no financing is attached to them.
Or get financing from someone else for future properties.

    Bookmark   December 13, 2013 at 10:43AM
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We buy with cash, then take out HELOC after the purchase. HELOCs are low cost loans.

You need to figure out ways to move money around from one property to another property without violating tax rules. There are conditions with what you can do with the money that you pull out from the house. You need to talk to your tax people, attorney and the banker for this.

    Bookmark   December 19, 2013 at 3:15AM
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You simply have to start taking out commercial loans rather than residential. Ten properties is the max to qualify for a residential loan. You will pay a slightly higher rate. It is what it is.

    Bookmark   January 18, 2014 at 11:52PM
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Other financing or none at all. I only buy properties that make more than 100% return each year. Forget about anything that makes a small return. Your money multiplies exponentially with those higher rates of return. Before long you wont need financing at all.

    Bookmark   February 9, 2014 at 6:54PM
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100% ROI?

    Bookmark   February 9, 2014 at 10:13PM
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