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All Forum Posts by: Kristian Kotov

Kristian Kotov has started 7 posts and replied 17 times.

Quote from @Justin Hammerle:

@Kristian Kotov

Based on what I've read I think your best bet is going to be a private asset based loan. There are various products under this space which can include construction to perm, short term acquisition and construction, or long-term acquisition only.  Depending on what your looking for, the most important factors will be your cash position and the merits of the deal you are proposing.

I know a few lenders in this space and one in particular that I think would be a good fit for Fall River.  Glad to talk more and make the connection.


 Thank you I'll message you privately about that one. 

Quote from @Erik Estrada:
Quote from @Kristian Kotov:

I have identified multiple 5-unit buildings that I am looking to purchase in the Fall River, MA area. Originally, I was looking for FHA loan, but when I found a 5-unit building within my budget, they told me that FHA doesn't work for that because I need a commercial loan for anything over 5-Units.

I'm looking for advice on how to find a commercial lender to work with, whether my personal income / credit score factors into this? 

Full Disclosure: It's my first time investing. 


 There are both full doc and no doc options for 5-unit properties. They will most definitely be a commercial loan. Happy to connect. 

Full disclosure, I don't know what Full Doc vs. No Doc means, I'll message you directly. 
Quote from @Robin Simon:
Quote from @Kristian Kotov:

I have identified multiple 5-unit buildings that I am looking to purchase in the Fall River, MA area. Originally, I was looking for FHA loan, but when I found a 5-unit building within my budget, they told me that FHA doesn't work for that because I need a commercial loan for anything over 5-Units.

I'm looking for advice on how to find a commercial lender to work with, whether my personal income / credit score factors into this? 

Full Disclosure: It's my first time investing. 


 The 5-10 unit multifamily is a pretty distinct financing niche - most options outside of a traditional bank or credit union will likely underwrite it based on the asset not your personal income

Do they care about my personal credit score or liquidity? 
Quote from @Mohammed Rahman:

Hey @Kristian Kotov - anything above 4 units is a commercial property. That's why no consumer based loan product will work (including FHA, conventional mortgage, etc.)

I recommend reaching out to commercial banks/lenders in your area, or simply googling some options. There are a few different lenders out there that will lend nationally and can quickly give you a yay or nay based on the data you input about the property. 

Commercial loans focus more on the asset itself and its numbers, not just your financial background. 

Thank you for your reply - My financial background is complicated because only in the past 8 months has my career really taken off, and most convenentional lenders want to see at least 2-3 years of consistent income. I know absolutely nothing about the commercial lending space, and am already googling my way through that one, but I'm in a not so unique position of not knowing what I don't know so... I'm asking a lot of rookie questions. 

Quote from @Jonathan Taylor:

@Kristian Kotov I agree to the above comments but your limitations here may be experience. My lenders in the commercial space do not lend to first time borrowers. Experience is always required. So regardless of LTV, DSCR confirm that the lender will accept a first time investor.

I can understand & respect that for sure, I know I gotta start somewhere though. I wanted to start small, but once I saw the prices of the 5-unit buildings a little outside of my area versus the prices within my area, it seems like my barriers to entry are not too far off. 
Quote from @Stephanie P.:
Quote from @Kristian Kotov:

I have identified multiple 5-unit buildings that I am looking to purchase in the Fall River, MA area. Originally, I was looking for FHA loan, but when I found a 5-unit building within my budget, they told me that FHA doesn't work for that because I need a commercial loan for anything over 5-Units.

I'm looking for advice on how to find a commercial lender to work with, whether my personal income / credit score factors into this? 

Full Disclosure: It's my first time investing. 


If you are looking for a 5 unit to live in (I'm guessing that because you were looking at FHA and it's your first property), that's not going to happen but you were on the right path.

Find a 4 unit that will satisfy FHA's self sustainability test and make it work. Your cost to entry will be lower, your rate will be lower by a third and your ability to manage the property because you live in it will be way easier as well.

I don't necessarily want to live in it - the only reason why I was considering the FHA was because of the low-money down needed an FHA and because I can use an FHA on up to a 3 (or 4?) unit property. 

I am not familiar with the FHA's self-sustainability test though - could you elaborate on what that is? Looks like I need to do more research. 

I have identified multiple 5-unit buildings that I am looking to purchase in the Fall River, MA area. Originally, I was looking for FHA loan, but when I found a 5-unit building within my budget, they told me that FHA doesn't work for that because I need a commercial loan for anything over 5-Units.

I'm looking for advice on how to find a commercial lender to work with, whether my personal income / credit score factors into this? 

Full Disclosure: It's my first time investing.