Buying unlimited rental properties is easy when you work with a lender that has an investment property road map created for you.
Table of Contents - Step by Step Guide to Buying Unlimited Rental Properties
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How to Buy Unlimited Rental Properties
I'm going to show you how to buy unlimited rental properties.
I didn't think this was possible when I worked at the bank, and many of my customers didn't either.
When I first started at the bank, every investor I worked with wanted unlimited properties.
In fact, I never thought I would quit the bank because we had the best rental program in town.
I was at the bank for many years and I quickly saw the lender reduce its rental program.
First, they offered unlimited properties.
Then 5 with them, but no cap on how many you can have.
I have recently heard they now cap at 5, regardless of where you got the mortgage.
The funny thing is, while I was working at the bank, I received many referrals from mortgage brokers that told me they could only finance 4-6 rentals.
So, leaving the bank I figured 4-6 was the max, then off to the b-lenders or privates.
However, that is not the case and I'm going to share our road-map with you.
Step 1 - Pre-Approval
The very first step is a mortgage pre-approval or what I like to call a cash flow analysis.
What happens is we gather all of your documents and information about your rental properties and analyze it under the lens of the lenders.
However, for our example, were going to assume you have no rental properties.
Step 2 - Lender Selection 1-6 properties
Most of the big banks will do 5-6 properties.
Some of the big banks claim to finance up to 10 properties, however, I have found that anything over 6 has to go to head office and they are incredibly tough in their review.
In this step we match you up with the lenders that allow you to have up to 5 to 6 properties in TOTAL.
Keyword here is in total because some lenders will do 2-4 rentals with no cap on how many you own. More on this is step 3.
If you have good credit and income, getting 1-6 properties should be a breeze and these would all be with A lenders at excellent rates.
Step 3 - Lender Selection 7-23 properties
As an investor, this stage is when you really start raking in the cash flow.
We have a lender that has no cap on the number of properties you can own.
This lender will do up to 12 properties or 1.25mm, whichever comes first.
We also have several A lenders who will do 2-4 properties regardless of how many you own in total.
In this step, the interest rates can be slightly higher than the Step 2 lenders, however, the rates are still incredibly competitive.
Most mortgage brokers do not understand investor financing in this stage or the next, based on our findings.
Step 4 - Lender Selection 24+ properties
If your working with a Mortgage Broker who understands this stage, you're more than likely into the B-lending category.
B-lending can have between ok to high rates.
HOWEVER, we do not go to B lenders at this stage unless you 100% need to.
We have access to the commercial departments at many large lenders that will allow you to buy unlimited rentals with A lending rates.
I have found that branch representatives at a specific lender don't know about this option for investors.
It makes me laugh some times.
But, I figured this out because like you, I am an investor and needed access to low-cost funds.
There is one negative that I can think of with going the commercial department route and that would be that we then have to charge you a lender fee.
Generally, this fee is 1% of the funded mortgage amount.
In all other steps, with the exclusion of b-lending and private funds, there are no lender fees.
How do I get started?
To get started buying unlimited properties we recommend a pre-approval through our sister company LendCity Mortgages.
You can call LendCity at 519-960-0370.
You can also email LendCity at firstname.lastname@example.org.
Lastly, you can apply online with LendCity Mortgages here.