How Many Mortgages is too many?

Episode 79: How Many Mortgages is Too Many?


How Many Mortgages is Too Many?

It this episode I am talking about how many mortgages is too many.  Specifically, how many mortgages is to many.  This is a listener question.  Typically, investors are limited to 10 (bank) mortgages.  The first three mortgages are typically fairly easy to get, but the closer you get to 10 mortgages the more difficult bank financing becomes.

Getting Multiple Mortgages

If you have 10 bank mortgages, you’d better have good income from the properties and good personal income as well.  Investors like to use the BRRR (buy, rehab, rent and refinance) method to preserve cash on hand.

Alternate to Bank Mortgages

By using private financing (hard money, investor money or seller finance) you could potentially have more than 10 mortgages.

What is Your Comfort Level?

The short answer to this question depends on your personal comfort with risk.  Debt equals risk.  Many investors that lost a lot of money in 2008, will tell you not of over-leverage yourself.

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