Maybe you’ve attained several mortgages from them already, and you’ve been buying up real estate left and right, building your portfolio.
You might not see it coming, but once you own a set number of mortgages in your own name, the traditional bank will likely cut you off, refusing to lend you another cent.
Find an investor-friendly bank or mortgage broker.
Little did I know that there were investor-friendly private lenders out there looking for deals.
Personally, I’m not a huge fan of commercial loans that require me to personally sign or that are eligible to recast in, say, five, seven, or 10 years, since now my other assets are at risk in a default (not just the property loaned against) or I may not qualify for the loan to continue if there was a dramatic change in property value or in my personal income or credit.
There are also ways to get the deal without the bank.
Better yet, you could find a money partner who would either put up all the money for the deal or sign on the loan.
Become the bank.
At some point, possibly after you’ve grown your real estate portfolio, you may start thinking about becoming the lender, as opposed to the borrower.
If so, what are some of your favorite, creative strategies for financing your deals?