Want to build a large real estate portfolio? Choose the right lender at the right time.

Regardless of your ambition or finance goals, assuming that borrowing 100's of thousands of dollars will have no impact on your future is simply incorrect.

Because it does.

All lenders have different policies in regards to their limits of how much you can borrow and how many properties/units you can own. Once you surpass these levels, you are, for lack of a better word, blacklisted. Furthermore, all lenders interpret rental income differently so choosing lenders in the correct timeline can either make or break your future files depending on how much rental income we can add to your portfolio moving forward.

Let me explain with an example.

One major bank has a global cap of 5 properties - one primary residence and 4 rentals. Once you reach this level, you are done. Another major lender has an internal cap of 16 units; meaning, they don't care how many properties you have elsewhere so long as you don't surpass 16 with them personally. In this example, choosing the first major bank at the beginining of your portfolio would allow for greater expansion compared to the reverse.

Secondly, it is wise to choose lenders who better value rental income later on in your path to wealth as prior owned properties can actually help your portfolio, rather than hurt you. For many lenders, having additional properties makes your file worse because rental income is not heavily weighed as a benefit.

For all my clients, behind the scenes, I create what I call a "Lender Timeline": a detailed plan of using the right lender at the right time designed to allow for maximum expansion of your portfolio.

Every loan you obtain will affect your life moving forward. Period.