I currently have 4 morg. w Wachovia…they forgot to tell me that was the limit for them…I am going to be flipping these properties to a Sub S…Has anybody done this…Wachovia wants to rewrite all the loans w fees of course…Is there a less painful way?
Use a variety of different lenders.
You may need a broker’s help. One specializing in investment loans would be best.
The 4 property limit is set by Fannie Mae. So what you need to do is find a program that is not backed by Fannie Mae, basically any non conventional loan.
Question: Why are you flipping to a Sub S corp? If you go to refinance down the road this is going to make it very hard to refinance the properties. You need to s/w someone who works a lot with investors. I have found that I have had to sit down and s/w both my investors and their accountants because the accountants do not have any idea of the guidelines and their advise often conflicts with what my investor really wants to accomplish.
To give you an idea. Fannie Mae will treat any property that has been quit claim within a 6 month period as a purchase and not a refi. They are being very strict on the rule which they have allowed us to get away with in the past.