If you have been buying houses then you know once you purchase to many houses you run into a problem. How to finance more houses.

Here are a few suggestions for solving your financing of homes. First let me tell you I have a credit score over 735 735 so my credit score does not hurt me when getting a loan. What hurts me is my debt/income ratio. I have many houses and lenders will only account for 75% of the rental income for each house. This is to allow for a vacancy rate. Well as you can see, when you have many houses that 75% will catch up to you soon enough.

My solutions:

Do lease options. I started buying properties on a lease option with the right to sub-lease. This only works for pretty houses where the seller just wants out from the mortgage because I pay nothing out of pocket. Most of the properties I do this with the seller needs to move out of the area for some reason. I only do it with pretty houses so I don't have any cost in fixing up the house. As an advantage to the seller I guarantee the mortgage payments for one year and then have another year of non-guaranteed time for my tenant/buyer to purchase the home.

Partner with family on deals. I have pulled 3 family members into great deals. We split all the cost/income 50/50 but they go get the financing. This works for flips and properties you want to hold long term

Pay 20% down. The mortgage market is always changing but this is how I purchased two houses last month. If you pay 20% down you can do a mortgage as stated no-documentation. That means the lender does not account for your D/I ratio. Like I said the mortgage business is always changing right now so this option may or may not stay.

Wholesale deals. You probably know that if you tie up a great property you can sell the contract to another investor. I'm always open to buying deals that make sense for my business.

Partner with the sellers. I have done this option a few times to give the seller more equity. I make up the back payments and list the property with my real estate agent. The funds at the closing table then pay me back any money I put into the house or back payment I made. Then anything left over I split with the seller. I usually split the equity 70/30. So I get 30% and the seller gets 70%. I do this with higher income properties or properties with not much margin. This saves on purchasing/closing costs.

I hope this info helps. Happy house buying.