All Forum Posts by: Rob Krach

I had a client reach out to me and do this, are they contiguous?

If they are, reach out to a community bank.

you will have to increase your down payment.

@Cody Barrett that is a lot... as a commercial lender, most of my clients who do purchases, bring me 2 years operating history, current rent roll and and we are good up until we order the appraisal.

@Dawn Roof,

I work for a commercial lender and even with the under $500,000 loan amount premium our rates would be low 4's for a 5 year fixed amortized over 30 years (it is a hybrid product that after the first 5 years is based on 6 month libor rate.)

Unfortunately I only have referrals for Chicago and don't know any commercial lenders in North Carolina.

I did a quick google search of apartment lenders north carolina and a list of lenders popped up so I would recommend starting there, unless you belong to a credit union or have a community bank near you.

hopefully this helps,

Rob

Dawn,

7% is horrible, check with community banks, Fannie, or credit unions.

The good news about this being a commercial loan is that the aprraiser is going to verify operating history over the last two years and give you their cost expectations and verify the rent roll.

Good Luck,

Rob 

Illinois is one of the most tenant friendly states there is, you need to consult an attorney.

@Dawn Roof do you have financing setup? Are you going to pursue it as two separate buildings or one offer and a commercial loan?

@Austin Hajjar , If you are still unable to find a lender who will do this for you, reach out to me and I can have my contact in our Seattle office help you.

My firm does blanket loans like this all the time... Mostly when the properties are contiguous but occasionally when they are in the same neighborhood, very close together and the total is 5 units or greater between the individual units (i.e. a duplex and a triplex right next to each other or one house apart from each other etc.)

How long have you owned them?

Is there at least 18 months of rental history?

Let me know if you have any questions or need specifics with regards to commercial lending.

thanks,
Rob Krach

Why don't you J/V with someone who has experience?

My underwriters won't even think about going over 65 - 70 % LTV for someone who doesn't have property management history.

I can break down more of the details for you if you would like, pm me.

Cheers,

Rob

@Eddie Allen, do you have a specific property in mind? How did you find it? How are you financing it?

Cheers,

Rob

@Amr Omar, you did a great calculation but missed the 3.5% downpayment part, which if @Ernest Quallis is getting it for 3.5% down then I have to assume that he is calculating based off of FHA's owner occupied first time home buyer and will have to live in the property for a year.