How does one get financing after 10 properties owned?

Whereas hard money lenders are short term and require you to refinance out of the HML, private lenders, not profit sharers or hard money lenders; but individuals you seek out and present to, and give them a return on their money for a rate they are satisfied with, with terms you both agree on, for the time period you agree on. That's the private money you need to find. If you want to buy and hold, its the only feasible thing out there.

Private lenders have no interest in real estate and are only there to see their money grow; whether it be money from a self directed IRA or wealthy people who are looking for places to invest their money.

I'm in the same position as you are with my buy and holds. Private money opens up possibilities not found anywhere else in this market.

Please check out the second link in my siggy, it is geared for the lenders themselves, but it is a site to teach people about how to become personal private money lenders.

Happy Investing! It is CERTAIN we will SUCCEED!

Hi Tammy, thanks I hadn't thought about private money as a long term financing option. I'll look into that. So is the only option open once 10 properties are owned long term private financing? No way to get financing from a bank?

Tony

WOW''' Wonderful info. Tammy, thanks.

I would start talking to smaller local banks and credit unions. Ones that hold the loans in house so they are not held to the fannie and fredy guidelines. That is the best way to get over the hump of the guidelines restricting the amount of mortgages you can have. The smaller banks will usually work with an aggregate (a total amount of money you could qualify for) instead of an amount of mortgages that are held.

I have been unsuccessful with small banks and credit unions. Who is the person at the small banks to talk to? Is there a particular strategy that works best for this? Do you have a list of the ones that will work with the REI who don't qualify for Fannie's standards? This would be so wonderful and helpful! Thanks!

I get double posts, I'm not sure how or why, I only press enter once.

what about asking the seller (if it's a FSBO) to do a lease/option? not sure what kind of deals you are doing at this point. if they are listed on the MLS but are not REO's, L/O's may still be a possibility.

Thanks for the idea of talking to local banks and credit unions about financing. I was pondering the best way to approach the banks and I mentioned this to a very successful REI that I met at a local REIA meeting that I attend. He was incredibly helpful in that he agreed to meet with me the next day and showed me his own bank presentation and the strategy that he uses to market his business to local banks. It basically consists of the following:

- Business plan
- Deal portfolio (details of all deals done to date)
- Company info ( contact info, FEIN Documentation, FEIN documentation, if corp corporate formalities, current bank statements, P/L statements and balance sheet, and last three years of fed tax returns)
- Principle Info (drivers license, credit scores, mortgage statement, current bank statement, P/L statements & balance sheet, and last three years of fed tax returns)

He never asks for any financing or mentions financing in the first visit. He uses the initial visit just to develop a rapport and establish a banking relationship. He's been very successful in getting financing when he revisits these banks later looking to finance a deal.

I have yet to use this approach myself. It does take quite a bit of up front work gathering all the information. I'm still working on putting all the pieces together for my own folder. I'll let you know how it works out.

HELLO I put an AD IN CRAIGSLIST FOR INVESTORS WANTED With Cash CASH BUYERS
About a WEEK AGO NO ONE CALLED SOMEONE HAVE HANDYMAN SPECIAL ALLREADY
NO ONE CALLED AND I DONT KNOW WHY.
trying To GET buyerslist SO I can FIND SOME SELLERS So I Can Get MY
BUISNES Going Looking FOR Help,
thank you DARRYLSR.

Once you have enough properties group them in a blanket loan through a commercial broker. The properties that you refi in this ay will not be on your personal credit report and then you start again accumulating additional properties. Once the number is up there do it all over again.

Well- THINKING OUT of the BOX - for investors. There are several peer to peer lending / investing groups online. You may find someone you can work with who has the same vision in real estate you do - and the funds to move forward.
This is NOT advocating any site- only to show you some of what is out here.

http://www.prosper.com/

http://www.lendingclub.com/public/home-d.action

http://www.allworldprivatefunding.com/

Hope this gets you thinking out of the box!

Florida Realtor since 1982/appraiser /commercial & residential loan consultant

God Bless!
ademarco1

Place each of your properties into a land trust and put the loans in each indivual trust's TIN#! Another awesome benefit of trusts!!!! LOVE 'em!