This One Goes to 11: What happens after the 10th conventional loan?

Real estate investors love conventional loans — and for good reason.

Low rates. Long terms. Straightforward underwriting. It’s like buying rental properties with training wheels and a turbo button at the same time.

But then, something happens.

You close on your 10th financed property. You’re feeling good. You go back to your lender to tee up #11 and—

DENIED.

Wait, what?

You’ve got the income. You’ve got the experience. The property cash flows. So what’s the problem?

It’s not you. It’s the rules.

This is when creative financing becomes not just useful, but essential.

The lenders you work with will start evaluating you less like a borrower and more like a business operator. Your deal analysis will evolve. Your tax strategy will matter more. Your entity structure will get smarter.

It’s the next level — and it’s where true wealth is built.

If you’re at loan #9, enjoy the conventional ride — but start planning ahead.
If you’ve just been shut down for loan #11, don’t panic. You’re in the right place. This is where the fun begins. Because in this business, you don’t stop at 10 — you go to 11.

Why Conventional Loans Stop at 10

Fannie Mae and Freddie Mac — the government-sponsored enterprises (GSEs) that back conventional loans — set a hard limit: no more than 10 financed properties per individual borrower.

Here’s what that includes:

Primary residence with a mortgage? That counts.
Vacation home in the mountains? Counts.
Every little rental? Yep, all of them.

This rule isn’t based on the number of properties you own — it’s based on the number of active mortgages backed by the GSEs. You can only have 10 financed properties in your name, period.

And if you’re wondering:

“What if I paid one off?”
Then congrats — you’re at 9 again. Welcome back to the party.

But once you hit that magic number 10, you’re out.

Until you pay another one of your properties off and open up the slot again, conventional lending is officially off the table.

Cue the sad trombone — unless you’re ready to level up.

Turning the Volume Up: Life After 10 Loans

Here’s where most casual investors slow down — but it’s also where serious investors start having more fun.

Because after you hit 10?
You stop playing by Fannie and Freddie’s rules.
You start playing the commercial game. And this game? It goes to 11.

Let’s break down your new financing tools.

1. DSCR Loans: Let the Property Qualify Itself

DSCR (Debt-Service Coverage Ratio) loans focus on the cash flow of the property — not your income, your employment history, or your existing loan count.

This is perfect for you if:

You’re self-employed or full-time in real estate
You want speed and flexibility over red tape
You’re scaling a rental portfolio aggressively

Key highlights:

Low income verification required
No tax returns
Unlimited number of properties
Ideal for buy-and-hold investors

Typical requirements: a DSCR of 1.0+ (i.e., the rent covers the mortgage), good credit, and 20–25% down. The rates are slightly higher than conventional, but the tradeoff is well worth it for the freedom.

2. Portfolio Lenders: Banking on Relationships

Portfolio lenders are typically regional banks or credit unions that hold loans in-house instead of selling them to Fannie or Freddie.

Because they’re not bound by conventional lending rules, they can:

Go past the 10-property limit
Customize terms
Approve based on the big picture (your experience, your assets, the strength of the deal)

Perfect for:

Investors with LLCs or trusts
Creative dealmakers
Mixed-use or niche properties

A portfolio lender may ask for a business plan, a personal financial statement, or a presentation of your overall strategy — but that’s a good thing. It means they’re treating you like the operator you are.

3. Leveling Up

Once you’ve built a solid base, it’s time to think beyond one-size-fits-all loans.

You might be ready for:

Cross-collateralized loans (borrowing against multiple properties)
Blanket loans (financing multiple properties of the same type under one mortgage)
Equity partnerships or syndications

This is the stage where you start looking at your portfolio like a business — using one property’s equity to fund the next, or combining assets for larger deals.

If you’re developing, repositioning, or scaling in a specific niche (like short-term rentals or small multifamily), building a custom capital stack can unlock new deal flow without draining liquidity.

What to Expect as You Level Up

Graduating from conventional to creative financing means:

Fewer rigid rules
More emphasis on deal performance
Stronger relationships with lenders
Greater need for strategy and documentation

But it also means you’ve moved from the sidelines to the main field.
You’re no longer just an investor — you’re an operator. A builder. A portfolio architect.

And that requires a new kind of support.

Let’s Talk About Your Post-10 Loan Strategy

I work with investors who are:

Hitting the 10-loan limit and unsure what’s next
Building out LLC portfolios
Moving from one-off properties to strategic scaling
Ready to structure creative, long-term financing options

Whether it’s your first DSCR loan, your first portfolio blanket, or a combo strategy unique to your market and goals, I can help you map it out.

📊 Curious where you stand today?

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Disclaimer: This is not real estate, legal, or financial advice. Please contact your preferred attorney or financial adviser for help specific to your needs or issue.