Question for those of you with large rental portfolios ( PM, REOcons?)

How do you guys aquire all your properties? I know that there is only so many conventional mortgatges that a person can have going on at once. Do you guys use Hard money lenders to finance properties to you? Im trying to come up with a game plane to come up with 25+ properties, just trying to figure out how to get them all financed. Thanks guys.

How many do you have now?

Funny you ask! Haha im a beginner and am currently working on my first rehab, that I plan to flip to build cash reserves to eventually fuel rental properties.

There was a reason I asked.
Now I am asking why you worry about property 26 when you haven’t started number 2?

If you become successful with a good core group of properties all kind of options will present themselves.

Buying the properties is absolutely the easiest part of the equation. With all the hype about real estate investing, there are a LOT of desperate landlords out there will do ANYTHING to stop their pain. You can take their properties at a DEEP discount and they will sell them subject to their existing mortgage or with owner financing. There are also a lot of REOs for sale and I believe that we’re just at the beginning of an avalanche of new foreclosures.

I have purchased most of my properties with conventional financing. There is no limit to the number of loans that you can have, although there may be a limit to the number of conforming loans. Ask the members of your local REIA which small local banks are investor friendly. Believe me, getting the property and the loan IS the easy part. Far more difficult is learning to be a good landlord and dealing with all the extraneous stuff.

Good Luck,

Mike

Thanks for the replies guys

"Buying the properties is absolutely the easiest part of the equation. With all the hype about real estate investing, there are a LOT of desperate landlords out there will do ANYTHING to stop their pain. You can take their properties at a DEEP discount and they will sell them subject to their existing mortgage or with owner financing. "

I am beginning also. But how do you find these landlords?

You can often find these distressed landlords at your local REIA. These people are so disgusted with the whole thing that they won’t be regular attendees at the meetings, but they will advertise their properties when they’re getting rid of them.

Many of these landlords will also list their properties on the MLS. Therefore, your realtor will bring these deals to you.

Finally, if you’re going to be a serious investor, you should be intimately familiar with what’s going on in your area. I’m in my city every day working on rentals, meeting potential tenants, etc, and I keep my eyes and ears open as I’m out and about. I know the story on just about every property that is available. As I’ve said many times before, REI is WORK. If you invest time and effort, you’ll have great results. Listen to the gurus - “I made $1,000,000 my first year working 5 minutes a month” and you won’t get far.

Good Luck,

Mike

You also can set up a few corporations and obtain credit in them, then in 2 or 3yrs you will have no problem using the corp. credit to obtain financing. You really do not want to risk your credit on all your properties. Its a business, let the business take the credit risk, your credit should be used for personal things…

Thanks for all the replies.