All Forum Posts by: Ali Hashemi

I own a fully leased 8 unit multi-family and am looking to purchase a 12+ multi-family in 2018. I estimate in my geography I can find what I'm looking for for around $750,000 or less.

My bank is hard and fast on requiring 20% down-payment. And I figure I'll need an additional $10k for 'transition/closing costs'.

20% of $760,000 is $150,000.

I currently have $25k in my Roth IRA and $100k in my 401k and will soon have (if I stay on track) the remaining $25k in savings.

Selling my 8-unit is not an option (not enough equity). Finding private financing is always an option, but unlikely (I don't know many people with that kind of money to spare). So leveraging my Roth IRA and 401k seem to be my most feasible option.

What is the best way to do this:

1) Cash out my 401k (worry about tax penalty in 2019)

2) Borrow against my 401k?

3) Can I 1031 exchange my 401k?

4) Some other option?

I appreciate any advice/insight/recommendations....

Great to see I'm not too late for this! Where can I get more information, I'm definitely interested!

I avoided starting with SFH because I wanted scalability. SFH's are such a grind and so many people do it. Multi-Fam is the way to go if you're hungry enough.

I was/am similar to you. The hardest parts I found were a) getting a bank to take me seriously and b) finding, assessing and making an offer before a larger shark came in and scooped up the property I was looking at.

Good small multi-family go quickly.

To fix these issues:

- start building a relationship with a local bank. Meet with a banker and involve them in your search process. That way when it comes time to pull the trigger they know you and your criteria. Also they will only finance in certain geography.

- To find a property before the bigger sharks scoop it up you have to be proactive. If you see a property you like, look up the owner online and call and see if they're interested in selling. You'd be amazed at how many owners would like to off-load a property but just "haven't gotten around to it". Those are usually the ones that offer the most reliable cash flow too. They're making money so the owner is kind of "meh" about selling it.

Good luck!!

I use http://www.loopnet.com/

Love it

Looking to connect with southern Indiana / Kentucky area commercial multi-family investors to share meet-up events, market information, property discussions etc.

If you're in S. IN or KY and have experience or are currently seeking opportunities to invest in commercial multi-family, let's connect!

ALI