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Hello fellow CMFer’s

Been busy. Acquired four rental properties within the last two years. I was just about to put an offer on a fifth property when the C-19 crisis hit.

Need some advise. I’ve been winging it so far but now needs the tips and tricks to get 6th and 7th mortgages approvals.
I’m somewhat familiar with financing and mortgages, that is probably even why I’m even wondering how some individuals can garner 10-15 plus properties on mortgage. I’m guessing at some point income/debt ratio becomes a concern? How does some people do it? What are ways that this can be done? My time line is short. I would buy the 5fth to 10th in short order as soon as deals come up at the right price. But every time I call my mortgage broker since my 3rd and my 4th, she is starting to groan. She says she doesn’t even know how I keep on getting approved. I could somewhat understand her predicament. I would imagine that TDSR is becoming a concern. I also heard that some banks have a max no of mortgages per individual as a policy

I do have great credit and I put 20% cash down all the time.

Other Questions:
Would the banks appetite for investment properties improve after this crisis?
What effect will this crisis have in the real estate/rental market?
Which Bank/CU is the most aggressive in mortgage lending?

Thank you in advance
 

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Every lender has a different appetite. And each have their own criteria for how many properties they are willing to finance for you or even consider even if held elsewhere. Going on 10 properties with 10 mortgages is a huge risk for yourself and the lender. You are bordering Commercial lending. Commercial lending is different than residential which is why your broker is cringing. Residential underwriting qualifies you on the personal income you generate....commercial underwriting qualifies you on the income your properties generate - essentially treating you as a business owner.You can try to cheat the system - as many do who have 2 or 3 rental properties, but your not doing yourself any favors.

My recommendation is you contact a commercial broker and get your financing that route.

To answer your other questions....no one has an answer. My personal opinion is it won't change much. The problem we are all facing is people losing their jobs and not being able to afford their debt payments. Once this is all over, hopefully soon, its business as usual. If it prolongs, then things may change.
 

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I don't think any financial institution, whether 1st or 2nd tier, would lend for 5th, 6th.... I heard that people would arrage mortages from a syndicated private lenders. The private brokers know how to play around paying downpayment and getting approval. Remember the interest rate is unbearably, in my opinion, high. I am curious about how they survive. They do, though, in a CRAZY real estate boom market as the price appreciation exceeds the capital cost.
 

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I don't think any financial institution, whether 1st or 2nd tier, would lend for 5th, 6th.... I heard that people would arrage mortages from a syndicated private lenders. The private brokers know how to play around paying downpayment and getting approval. Remember the interest rate is unbearably, in my opinion, high. I am curious about how they survive. They do, though, in a CRAZY real estate boom market as the price appreciation exceeds the capital cost.
On the contrary. Many institutions do lend to the same individual for multiple properties.
Private lenders is something else. Someone who is building a real estate park will steer clear from private lenders. The private financing sector caters to individuals with poor credit or poor sense of money management but rich in property equity. These individuals will not qualify through a conventional bank. Given the current pandemic, many private lenders will see their volumes rise.
 
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