I want to invest aggressively; how do people get financed for 50-100 properties?

I wanted to set an aggressive goal for 15 15-50k properties in my first 2 years. My first property I will make sure to go nice and slow on to make sure I can handle REI but I am confident I will do well.

Here is my current financial situation:

Going in with a partner, he has horrible credit but makes 90k/year and is bringing 30k to the table. I will be doing all the property buying/management. I make low 6 figure income but I have a 360k house and 38k left on an auto loan. I have no CC debt but I owe 7k on an existing older student loan. I have no other debt; my fico score is 699 (mid).

So that is 30k up front and decent incomes. I want to target these homes but I am afraid I will buy one home for 35k with 10% down get renters and be stuck not being able to buy anymore houses because of my credit being jammed with mortgage tradelines.

How are people getting all these properties? Is working up a business line of credit the only way to keep my personal debts from getting in the way from obtaining investing debts? My cash flow vision in 5-10 years is 10k/month but I don’t know if I am dreaming or not but I know it will take 50-100 properties to do it.

With that 699 credit score you can go 95-100% LTV,Interest Only which ever you want…that way you will be putting zer0-5% down…= more properties you can buy!

Keep for a time sell for a KILLING, and buy more…

At the time of purchase also get a HELOC as a line of credit to purchase more properties…

100% financing will be no problem. Look for low 7’s on the 80% and 12% on the 20, for a no ratio, Interest only, escrows waived, 1 year hard prepay. (I know, closed two this week).

The problem you will encounter is most lenders impose a two property limit in a 6 month period.

Is there a way around it? Sure, prove two years of managing multiple investment problems.

The problem with you buddies 30k is it is not seasoned. Yet another obstacle that must be worked around. You need to get that money in you name ASAP.

Outside of that, you will have to put down atleast 10% per loan.

On another note, why muck about with cheap properties, why not buy 7 100k properties. Fewer renters to keep up with, perhaps a different class of customer…Just a thought.


but at the same time, why not buy 14 properties @ 50K and have the same kind of renters…possible Lease Option scenerio (Lease to buy renters take care of the property and maintain it) and make double or even triple $$$ with appreciation at time of sell (of course this figures in monthly rent minus cost of maintenance and mortgage).

Also there are multiple lenders that will allow one person to purchase multiple properties 5 + in a 30 day period.

Here is a great option for you. 1031 exchanges

Buy a couple of your 50k properties with 10%. That allows you probably 4 properties if you include your closing costs. Then upgrade those properties with a 1031 exchange. Talk with your local title company on how that works and all of the legalities of it.

Another option is to get the business line of credit. With both of your incomes and the 30 grand as working capital, you should have no problem getting a $100-250 LOC that would give you a lot of working capital to make this work for you.

Another option would be to take your $30 and buy an apt complex that has 20+ units. You figure the rents on those 20+ units is a strong start. Then you’re only dealing with one loan and closer to your 50-100 unit goal. The amount of income on that deal would provide a lot of capital to invest in more properties.

Good luck!


Now that is a trick. Invest in 7 at 100k and do OK, or buy 14 at 50k and make double or triple.

I doubt properties at that cost will have the same quality renters. Every where is different, but here, 50k will get you a single wide full of folks. 100k, with some looking, can get you into a decent Blue Collar neighborhood. They tend to lead somewhat less volital lifestyles and are more likely to execute the lease purchase. Your price point of course depends on the people you are trying to attract. Of course, the more expensive the property, the fewer you have to keep track of.

In my neck of the woods, picking up the 130-150k properties from banks at 105-120k seem to rent quickly with recent divorcees, relocating mid-managers, ect.

Good Luck…


What do you mean by “not seasoned” ? Also I guess I have been reading too many books and have the whole “cheaper junky houses have more potential” mindset.

I have to assume a 30k house can have the potential to net me 150-200/month cash flow where as a 100k home can net me 350 if I am lucky. Unless I am completely off base here it seems 20 30k homes are the better buy.


Seasoned means the lender wants to see that you have had control of that money for a cetain period of time, so they can assume it is yours.

For example: They do not want your buddy to lend you 30k just so you can prove reserves and meet the lending criteria, only to have you pay back the short term loan and come up short later on. It is another way for them to manage risk.

As far as property values, that call is totally dependant on your area and how you play the game. If you are more into the flipping part, it may be OK. I prefer to buy fewer properties and realize the same appreciation dollar wise over time with a higher class of renter. Old junky properties can turn into money pits as well - You may try to put the repairs on the TB, but if the A/C goes out, so will the tenant more than likely.

Also keep in mind most lenders have minimum lending guidelines, usually around 50k. For a loan that size, prepare to be pummeled on the interest rate. After all, lenders are commissioned based. Expect atleast a 1/2 point to the rate, and a hit to the YSP as not many LO’s will spend the time necessary to do a NOO loan start to finish for $500. Most lenders have minimum seconds as well, so if your doing an 80/20, you better be in the 100k range, or your loan amount will be to small to qualify for the 20.

Good Luck…



buying cheap houses and rehabing and either renting or selling is one aspect of REI…in fact it’s my preferable route…but here, 50k will get you a single wide full of folks" I tend to be more open minded about and try not to make assumptions of quality of people…Remember people remember how you treat them…and they are more likely to pay rent when you treat them like people and when the rental contract is spelled out clearly as to what is expected.

As far as “old houses can turn into money pits” yes…that is why you have to be selective of which “old house” you purchase…don’t buy the 1st run down shack at the side of the road.

Perhaps he’s found that buying expensive houses and turning around and RENTING them is far more lucrative…but in the end you’re still going to be getting close to the same rent out of each…due to EVERYONE NEEDS A PLACE TO LIVE and when the market is good a old house that has been rehabbed inside and is nice, will still go fast.

Now in regards to buying properties for 50K there are banks out there that will go all the way down to 40K, yes you will pay points, and get a higher interest rate. but as most people know there are RESPA laws as to how much you can charge based on the loan amt.

I respect your opinion, Matt, I just don’t agree with it.

HOEPA, section 32 of Regulation Z defines and covers high cost loans.
RESPA covers settlements and procedures, defines Relationships between interested parties, ect.

If you look on that post I never said that100% LTV NO DOC NOO was my program…I said I could offer 95% LTV, I said it was a good program…AND just so you know a 100% LTV NO DOC OO is more than possible…BRIDGE CAPITAL offers that programs with a 720 FICO $1M max loan amt…

Yes you see…100% INVESTMENT LOANS for full doc and stated and lite DOC loans are more than possible…read all the postings…


It is entirely possible to meet the goal that you set. I had a similar goal - 10 houses per year for 5 years. The absolute key to the whole program is to NOT put any of your own money into the deals.

Here’s how I do it. I work very hard to buy properties at well below market value. Since you’re talking about buying 30K to 50K houses, I’ll assume that you live in flyover country like I do. Do whatever it takes to find properties at 50% to 60% of the market value. Buy them with your cash. Then, go to a small local bank and refinance for 65% to 70% of the APPRAISED VALUE. Don’t deal with any bank that won’t loan based on a percentage of the appraised value. Ask the seasoned investors at your local REIA meeting which bank to go to and who to talk to. It is very important to deal with a decision maker (like the President or Vice-President of the bank). Take a cash flow analysis with you showing the positive cash flow that you will receive from the property.

Following this plan will not only preserve your cash but will put some cash in your pocket at nearly every closing. As you get more experience, keep an eye open for the occasional subject-to deal.

Following this plan should provide you the ability to obtain an almost limitless number of properties in a short time. Obviously, this strategy relies on you having good credit, so everything will have to be based on your credit (not your partner’s credit).

You were absolutely correct that the bigger profits are in lower income rentals. Forget all the political correctness nonsense - these tenants are more trouble than tenants in middle income properties, but the profits are much higher. You had better study up on landlord issues and develop a good system to deal with the tenants, or these lower income tenants will eat you alive!!! With the proper system, most of the problems can be averted. (If you’re a softy or a bleeding heart, stay far far away from being a landlord.) You must treat your rental properties like a business, not a charity, or you’ll soon be out of business.

Good Luck,