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I have several conventional loan mortgages on my rental properties. Bank denied me getting another.

My portfolio is showing too much debt but I'd like to keep buying. What can I do? by seebs320 from Blue Diamond, Nevada. Dec 17th 2020 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,300 contributions

We all want to own large portfolios of rental properties. BUT, in order to do so, it is important for a borrower to have sufficient income to make payments, even if a property becomes vacant. You will also be required to have cash reserves. The reserve requirement increases as the amount of your monthly obligations increase. So, if the lender, who has seen your financial records and says you have too much debt, that should be a warning that you are overextending yourself. Get a second opinion. Work with another lender for the same situation lender A declined you for. If the second lender tells you the same thing, then you should take that as a severe warning that you are over-extending yourself. In the 2008 Crash, many investors did what you are trying to do, without sufficient reserves, and as the market began to slow down, they crashed and burned, leaving the lenders with extreme losses. Lenders have not forgotten and are not allowing folks to overextend themselves. Another option would be to find a rich investor to partner with to provide you with the capital to keep buying. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ At NEXA, we've got you covered. We are licensed in all states except MA and NY and we are pending approval in VA, so give us a call. ~ 480-889-9000.

Dec 17th 2020
Dan Paladin (dpaladin)
#1 ranked lender in California - 732 contributions

The question is to general. There are many factors in your scenario to respond as to why you were denied. Is it debt ratio? Are you still collecting rents? (COVID) This is just to name a couple items that could be a factor. More info would be needed.

Dec 17th 2020
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