What is my best option to financing future real estate deals when I already own a lot of homes?
I own 18 rental homes which totals 32 mortgages. My mid range credit score is 719. What is my best strategy to I can continue to acquire property??? My stated goal is 1 – 2 homes per month but get concerned with mortgage companies worrying about how many home I own.
What most people do is to transfer the properties into a trust. Have the trust make the payments. Then send proof to the credit bureaus (spelling?) that the trust is making the payments and have them remove the mortgage information from your credit report. Now when you go to qualify for a loan, the mortgages do not show up and there are no issues. The best part is that the lenders cannot call the loan and you look like a renter.
You might want to consider creating some type of entity, such as an LLC, to manage the trust. Hell, some people even create a S-corp to manage the LLC. It all depends on your investing goals. You should talk to a CPA and a lawyer who specializes in real estate investing foradvice.
Regards