Stuck at 10 Loans? Why Scaling Investors Need a Financing Plan From Day 1
Here’s a common, nasty-surprise scenario many beginner investors have to confront: An investor with a few properties makes a move to expand their portfolio. They have an excellent credit score and are confident that they’ll have no trouble getting future loans. Except that the lender denies them financing.
What happened? Actually, the investor did nothing wrong, per se—they just hit the conventional loan limit imposed by both Fannie Mae and Freddie Mac. Most new investors are unaware of this cap, which is 10 properties per investor, including your primary residence, until they hit it.
The wrong conclusion to make here is that, as an investor, you don’t have any way of scaling your business. But the cap does mean that you have to do some financing research and planning beyond your ninth property. Investors should be thinking about strategic financing as early as possible if their goal is to scale their portfolio.
Here’s how to avoid the nasty-surprise scenario and reframe your investment property financing as a scaling strategy decision made before you buy your first property—not a problem you solve when you’re already stuck.
Why Do Fannie Mae and Freddie Mac Have the 10-Property Cap?
Once you cross the 10-property threshold, Fannie Mae and Freddie Mac stop viewing you as an individual investor and start viewing you as a commercial enterprise, one far more exposed to economic swings. Below that threshold, financing is based on your personal financial health. Beyond it, your personal finances no longer matter: lenders need proof your investment business can weather a downturn or vacancy spike, and your income is disregarded entirely. This makes sense given that Fannie Mae and Freddie Mac are GSEs whose mission is supporting primary homeowners, not commercial investors.
The Mistake: Treating Financing as a Deal-by-Deal Decision
This is a shift in perception, not in your actual finances. Your income and credit score haven’t changed, only how lenders see you. That means scaling investors need a mental shift too: stop treating purchases as linear, one-at-a-time decisions and start strategizing ahead. If growth is the goal, your financing strategy should be in place by property #2, not discovered by accident at loan #11.
The Solution: Portfolio and DSCR Lending
If this is all beginning to sound a little esoteric, rest assured: There are practical solutions that go along with the shift in strategy, and they’re widely available to investors. They are portfolio and DSCR loans, offered by lenders such as LendingOne, which work differently from conventional loans. These are asset-focused loans, not borrower-focused loans (which is what conventional loans are).
Instead of assessing your ability to cover your debt, a DSCR (debt service coverage ratio) loan assesses the property’s ability to cover its own debt. Typically, a DSCR lender will look for a DSCR ratio of 1.2 or higher; that is, they’ll want to see that your property generates at least 20% more income than is needed to cover costs.
A DSCR loan is a great option for investors who are still planning on buying investment properties one by one. If you’re planning on owning a total of 15 properties, for example, DSCR loans will help you overcome the 10-property threshold.
However, if your plan is to own and manage a significant number of real estate investments, you’ll need to start looking into portfolio loans, which assess an entire portfolio’s ability to cover unexpected costs rather than the financial capabilities of individual investments. These loans are efficient and crucial for investors looking for significant expansion of their business or those planning to consolidate debt.
What Planning Ahead Actually Looks Like
It can all sound far-fetched if you’re on your fifth property with conventional loans. But still, if your long-term vision is a substantial property portfolio, you need to start thinking differently from the very beginning. What that can look like in practice is lining up a DSCR/portfolio lender now, before you need one.
What you don’t want to do is delay this strategic shift until you hit your ninth property and start getting rejected by lenders. Trying to scramble for financing your next property will set you back, resulting in deals that fall through and, ultimately, a less successful investment business.
LendingOne is a lender built for the investor who plans to scale—not just a “next option” once you’re rejected elsewhere, but a strategic partner from earlier in the journey. LendingOne’s DSCR/portfolio loan products are flexible and come with options for new investment purchases, refinancing, and cash-outs. Moreover, there are options for break-even properties, which will hugely benefit investors who can’t quite meet the stringent 1.2 ratio requirement for a DSCR loan.
The best place to start is by contacting Lending One to discuss DSCR/portfolio loan options as part of a long-term scaling plan.
Costco’s $14M email settlement: Who qualifies for payment and how to claim before the deadline
Costco has agreed to a $14 million settlement to resolve a class action alleging the warehouse chain sent Washington residents promotional emails with false or misleading subject lines, and eligible shoppers have until Aug. 24 to file a claim.
The case, Michael Aaland v. Costco Wholesale Corporation, is pending in King County Superior Court in Washington. The complaint alleges Costco violated Washington’s Commercial Electronic Mail Act (CEMA) and Consumer Protection Act by advertising time-limited promotions in email subject lines, knowing it would extend those promotions past the stated deadline. Subject lines cited in the litigation included messages like “Today is the last day to access Member-Only Savings” and “Hot Buys available for 5 Days Only.”
Costco denies any wrongdoing. The company maintains it complied with the law and agreed to settle only to avoid the cost and uncertainty of continued litigation. No court has decided whether Costco did anything wrong.
Who qualifies
You may be eligible if you meet all of the criteria, which include receiving at least one commercial email sent from or on behalf of Costco between June 2, 2021, and July 7, 2026, residing in Washington state at the time you received the email, and receiving it at an address that appears in Costco’s records.
If you got a notice about the settlement by email or mail, Costco’s records indicate you likely qualify, but even those who did not receive a notice may still be eligible if they meet the requirements.
How to claim
You don’t need receipts or any proof to file. The fastest way is online: Go to the court-approved website, washingtoncommercialemailsettlement.com, where you can file even if you don’t have a Claim ID.
If you’d rather mail it in, you can download a claim form, print it, fill it out, and send it to the settlement administrator. Either way, your claim has to be submitted online or postmarked by Aug. 24, 2026.
What to know about the payout
The exact amount is not yet set, and it could be modest. Washington law (CEMA) allows people to seek up to $500 for each misleading email they received, but the settlement itself does not promise anyone $500 per email.
Instead, the money will be split among everyone who files a valid claim. Costco is putting up $14 million. After attorney fees, court costs, and administrative expenses are deducted, whatever remains will be divided evenly among approved claimants.
That means the more people who file, the smaller each check—and the fewer who file, the bigger each check. Because no one yet knows how many claims will come in, no one can say exactly what the payout will be.
One more thing worth knowing: Doing nothing has consequences. If you’re a class member and don’t file a claim, you won’t get a payment. Once the settlement is final, you give up your right to bring your own lawsuit against Costco over these issues. To keep that right, you’d have to formally exclude yourself, or “opt out,” by the same Aug. 24 deadline.
For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.
Millionaires leaving UK: CEO of $1 billion tax firm says it’s their ‘social responsibility’ to stay
The number of British millionaires has dropped to its lowest level in nearly two decades—and high taxes under the Labour government and persistent inflation are being blamed. Last November, the nation’s business secretary admitted he was worried that billionaires, entrepreneurs, and even doctors left the country because of Rachel Reeves’ budget. Now, the same exodus fears are circulating again, as the U.K.’s new prime minister, Andy Burnham, ponders a 2% tax on wealth over £10 million ($13.3 million).
But it’s not just an abstract concern—it’s already happening.
Martin Ott, the CEO of Taxfix, the Berlin-based tax app valued at more than $1 billion, exclusively told Fortune some of its wealthy U.K.-based clients have been eyeing an exit—but he doesn’t recommend it.
“Yes, there are certain customers, at a certain income bracket, that are moving to save money abroad,” Ott, a former Meta exec, said. “I always encourage people to stay where you are.”
‘You have a social responsibility to invest in your country’
In 2025, more millionaires have left the U.K. than in any other nation. According to the Henley Private Wealth Migration Report 2025, about 16,500 millionaires uprooted last year, totaling about $91.8 billion. This translates to a 9% reduction in the U.K.’s millionaire population over the last decade, in part thanks to fallout from Brexit, political uncertainty, and tax changes.
But Ott argues that leaving now is shortsighted. If the country’s top founders and high earners leave, it will weaken the very ecosystem they once thrived in.
“Saving taxes is one thing, but at the same time, you also have a social responsibility to make sure you invest in a country,” he explained.
In his eyes, wealth creates an obligation to keep the ecosystem healthy for the next wave of builders, operators, and job seekers. Ott says that’s why many of his friends and peers—people who could easily decamp to Dubai or Montenegro—are deliberately staying put.
“They’re saying, we’re not moving…We really want to make sure we also give back and build cool stuff that makes it worthwhile staying.”
To him, the more responsible choice is to weather the cycle, build through it, and strengthen the system from inside: “You don’t want a brain drain…I can only just encourage everyone to stay, build great new businesses, create an environment where entrepreneurs want to start something.”
Plus, pressure creates diamonds
Looking back on his early fintech days in London during the financial crisis, Ott recalled holding hundreds of millions of customers’ money in bank accounts, not knowing if the banks would survive the next day—and he said it taught him a lesson that still matters now.
“There was also that feeling that the world is going down. Do we need to move somewhere else? No, everything goes in phases,” Ott said. He credits the dark period with teaching him “what it means to go through crisis,” including how to manage his own personal health and how to be a better manager to others when the chips are down. But more importantly, it highlighted that downturns aren’t forever.
“Taking a more balanced, long-term view—that’s what I learned,” he added. “Things aren’t as bad as they look in the moment.
“And then new opportunities are born, and you can deal with crisis, because it’s constant, you’ll always have stuff that’s getting thrown your way.”
A version of this story originally published on Fortune.com on November 25, 2025.
Read more on wealth from Fortune’s Orianna Rosa Royle:
Do Mortgage Rates Need a Hike to Move Lower?
There’s an argument floating around that if the Fed hikes rates, long-term rates will move lower.
That includes things like 30-year fixed mortgage rates, which recently hit fresh 52-week highs.
Basically, a Fed hike will send a signal to the bond market that new Fed chair Kevin Warsh is serious about combating inflation.
As such, longer duration bond yields could come down.
And mortgage rates could ease at the same time.
Do Mortgage Rates Need a Hike?
A recent Bloomberg article cited a note from a Wells Fargo economist regarding the theory.
“So, one thing we have heard with great regularity from those who think the Fed will hike rates as soon as next week is that, by raising rates, Warsh (and by extension Bessent) will get what they ultimately really want: back-end rates to move lower.â€
“The thinking goes that by hiking, Warsh will firm up his inflation fighting cred and squeeze out the inflation premium built into the back end of the rates market.â€
The argument here is Warsh hikes to tackle inflation and unwind his predecessor’s supposedly dovish policy.
And in doing so, bond yields drop and mortgage rates come down as well.
Bond investors no longer have to be as defensive with a rate hike in the books.
It’s a counterintuitive thought, but you can see where it makes sense.
With the new Fed actually addressing the recent uptick in inflation, bonds can finally take a breather.
But remember that the Fed doesn’t set mortgage rates.
They control short-term rates, specifically overnight lending rates.
Conversely, mortgage rates are long rates, especially the 30-year fixed.
As the name suggests, it lasts for a full three decades.
So even if the Fed were to hike, mortgage rates could move in a different direction.
To that end, mortgage rates are more concerned with inflation because of their long duration.
If inflation is expected to worsen, the value of those mortgages will diminish over time.
If the Fed gets serious about inflation, that makes those mortgages more valuable in theory.
It means the dollar won’t erode as quickly and the return for holding those mortgages as an investor will improve.
What Will Trump Think?
While this all sounds hunky-dory, there’s the matter of the President.
Many say Warsh was hired specifically by President Donald Trump to cut rates.
Trump ran a campaign on bringing back record low mortgage rates.
He even went as far as to say they could even go lower than they have been previously.
So if and when the Fed hikes, Trump could get in a tizzy if he feels that’s under threat.
Having to explain that it could actually benefit mortgage rates, and maybe even the wider economy, could be a tall task.
However, if mortgage rates responded as expected and fell, he might not attack Warsh as he did Powell.
Of course, this is but one factor to consider. And there are many more issues at play, namely the Middle East conflict.
That’s still the biggie in terms of getting real downward movement on the 30-year fixed.
If we want significantly lower mortgage rates, we need to solve that.
ARK Invest Adds $12 Million To SpaceX Position While Offloading In Sigfnificant Shares Block, Bullish, Robinhood
Cathie Wood’s ARK Invest continued adjusting its exchange-traded fund portfolios on Tuesday by increasing its stake in SpaceX (NASDAQ:SPCX) while reducing exposure to several other companies. The firm’s official daily trading disclosures show that its funds collectively purchased 105,108 shares of SpaceX, a transaction valued at roughly $12.2 million.
SpaceX shares advanced 2.56 percent that session to close at $116.41. Even with the daily gain, the stock has declined about 29 percent over the past month amid ongoing post-listing volatility.
ARK has repeatedly added to the position in recent weeks, reflecting sustained conviction in the company’s long-term potential in reusable rocketry, satellite networks, and related infrastructure.
At the same time, the investment firm trimmed holdings in three other names. It sold approximately $2.3 million of Block Inc. shares, $1.6 million of Bullish, and $4 million of Robinhood Markets.
These reductions form part of ARK’s routine rebalancing activity, which aims to keep individual positions from exceeding roughly 10 percent of any single fund’s assets as valuations shift.On the day of the trades, Block closed higher by 2.29 percent at $83.10.
Bullish slipped 0.48 percent to $22.69, while Robinhood fell 3 percent to finish at $92.76.
ARK also recorded smaller purchases, including about $289,000 of Bitmine shares and roughly $33,000 of the 3iQ Solana Staking ETF.
ARK Invest has long focused on companies it views as drivers of disruptive innovation across technology, space, robotics, and digital finance.
The latest activity continues a pattern of selectively reinforcing exposure to SpaceX during periods of price weakness while dialing back certain fintech and digital asset related holdings.
Market participants often monitor these daily disclosures closely because they offer timely insight into how one of the more actively managed innovation-focused asset managers is positioning its portfolios.
Taken together, the moves illustrate ARK’s ongoing preference for thematic high-conviction bets over static allocations. By adding SpaceX shares and reducing stakes in Block, Bullish, and Robinhood, the firm is fine-tuning its exposure across growth sectors in response to recent price action and portfolio-weighting targets.
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"Ugly and rusty," Venezuela’s refineries are relics that will be hard to revive
"Ugly and rusty," Venezuela’s refineries are relics that will be hard to revive
Prediction: Under Greg Abel, Berkshire Hathaway Will Hold This Warren Buffett Stock for Decades for This Remarkably Simple Reason
Berkshire Hathaway (BRKA +2.82%) (BRKB +2.80%) has held American Express (AXP +0.34%) for nearly 40 years, making it a staple holding under former CEO Warren Buffett. I predict Berkshire will continue to hold American Express under Warren Buffett’s hand-picked successor, Greg Abel, because the company is attracting new cardholders from younger generations through its highly appealing rewards program.
Here’s why the value stock is a great buy now.
Former Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
American Express is winning with millennials and Gen Zers
In the second quarter of 2026, as American Express reported on July 24, Gen Xers accounted for 36% of spending volumes among individual consumers, followed by 31% from millennials, 27% from baby boomers and older, and 7% from Gen Zers.
However, Gen Zers showed 40% year-over-year spending growth, followed by 14% from millennials, 10% from Gen Xers, and 5% from baby boomers. Although Gen Xers and baby boomers account for the majority of consumer spending, the fastest-growing cohorts are younger generations.
Today’s Change
(0.34%) $1.13
Current Price
$336.52
Key Data Points
Market Cap
Day’s Range
$331.85 – $336.81
52wk Range
$288.34 – $387.49
Volume
116.6K
Avg Vol
3.2M
Gross Margin
59.74%
Dividend Yield
1.05%
American Express’s secret sauce
Cross-generational engagement is the holy grail of consumer brands. It’s how fellow Berkshire core holding Coca-Cola became a beverage enjoyed across age groups and geographies, and how Apple built an ecosystem that incentivizes families to adopt the next generation of Apple products.
To achieve cross-generational adoption, a brand has to offer something above and beyond the competition. And for American Express, that’s a rewards program unlike any other. For the six months ended June 30, American Express raked in $5.61 billion in net card fees but spent a staggering $9.94 billion on card member rewards.
So even though its annual Gold Card membership now costs $325 and the Platinum Card costs $895, members are still getting a good deal based on the value of their rewards.
The beauty of American Express’s business is that it can afford these ultra-generous card member perks because its main revenue stream is what’s known as discount revenue, which is the fees it collects from merchants each time an American Express card is swiped, inserted, tapped, or entered digitally. For the six months ended June 30, American Express generated $19.68 billion in discount revenue.
Anchor your portfolio with a high-quality stock
American Express has built an ecosystem that can endure for generations to come. It starts with a network of 155.1 million cards in force, which creates network effects that incentivize merchants to accept American Express even though the cards tend to have higher fees than Visa and Mastercard.
In turn, American Express generates substantial discount revenue, which it can use to offer generous perks to card members that cost nearly twice what members pay in annual fees. Because members are getting such a good deal, they are incentivized to rack up as many reward points as possible, which boosts discount revenue from merchant fees — and the cycle repeats.
American Express is attracting new card members and guiding for double-digit revenue growth and record earnings in 2026, even though consumer spending has been under pressure. The results and forecast show that the business can thrive regardless of the economic cycle.
Add it all up, and American Express stands out as arguably the single best Berkshire Hathaway stock to buy now.