Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

9
Posts
1
Votes
Tre Reaume
  • Elmira, NY
1
Votes |
9
Posts

Why do banks keep suggesting I begin REI with commercial loans??!

Tre Reaume
  • Elmira, NY
Posted

I am working my process and meeting with local inverstors, local realtors, and lenders. Three our of three (and now an attorney) have all said that its best to put my REI properties under commercial loans. The primary reason comes back to liability, of course.

And I may be missing it but for 1-4 unit multifamily properties I know residential loans are possible. They have lower interest rates, longer terms. Which as a REI is my target for now with buy and hold properties.

Is the fear or concern of a lawsuit that strong...? I feel like I am not connecting dots somewhere. Do I need to keep searching for the right lender?

Most Popular Reply

User Stats

233
Posts
140
Votes
Ken Naim
  • Investor
  • Lake Worth, FL
140
Votes |
233
Posts
Ken Naim
  • Investor
  • Lake Worth, FL
Replied

@Tre Reaume in short it makes them more money. Only fear kawsuits if your equity is above 50-100k per unit or you're a high net worth individual. Start out residential and as your equity increases move the properties into llcs.

Loading replies...