All Forum Posts by: Rob Krach

@David Toupin & @Robb Smedema,

Not to long ago, I had the idea that I would get money in residential so that I could then start my focus on commercial... someone asked me if you want to do commercial why are you screwing around trying to wholesale, that isn't what you really want so the motivation isn't going to be there and you are just wasting your time.

Fast foward 6 months and now I work for one of the biggest banks in the world in their multifamily lending unit, learning from the people who do this day in day out, meeting the biggest players in the game.

I have read a lot of posts authored by @Joel Owens and I have to admit the dude knows his sh*t (excuse my french bp)

my advice, figure out specifically what you want to do in commercial do you want to own just multi family, do you want to own big box retail spaces, do you want to own shopping centers, do you want to own office centers or buildings???

What is your Why behind wanting to get into commercial?

Best Regards,

Rob Krach

@Joshua Martin Probably not the answers you are looking for but should help a little:

There are some commercial products that will allow for you to purchase or finance two buildings directly next to each other with one loan instead of two, I wasjust apart of one where the guy owned two four unit buildings right next to each other on the same side of the street, and "an 8 unit" was financed, so it could be possible to get a commercial loan if it is a 4 unit and a 2 unit right next to each other on the same side of the street.

Where you would run into issues with the above or a commercial product is big banks have loan requirements for commercial lending, for instance my employer's is a $500k minimum loan balance.

(paraphrasing here but) Brandon Turner posted an article about buying a 4 unit and finding out there was actually a 5th unit but it got decommissioned and how he was keeping the 5th unit decommissioned until he got residential financing so it really depends on what is better for your situation. typically residential financing is easier to obtain.

if you have any commercial specific questions let me know and if you are going to go down this route, i would highly recommend smaller community banks or possibly credit unions around you or the property

Cheers,

Rob

@Gary A.They told me the biggest driver to it was the drill down of property type i.e. residential duplex, triplex, quad

if you want the apartments 5 units and up make sure you choose the residential apartment one.

I don't have it in front of me but can find the exact criteria i used in the next couple of days.

~Rob

I spent two hours on the phone with list source when I bought my apartment list.

what they don't tell you and the hardest part to over come is let's say you do a search for buildings with 5+ units, this will include rows of townhomes where there are 5+ townhomes connected.

i ended up getting 300 fantastic results and just sent out our first mailers to them after working with list source to specifically narrow down my search.

Question why are trying to put this in an LLC?

95% of banks disallow residential loans in LLC's

@John Nicholas Direct message me.

A lot of factors come into play when it is commercial, is it 5 units or more? is it solely multifamily? are there store front(s)?

There are several different products when it comes to commercial and change by the product.

Cheers,

Rob

@Mindy Jensen great article, I am curious is there a law or a requirement of landlords that they have to provide a reason, can't they just treat it the same way a lot of companies treat job applicants and state: "we have elected to go with a candidate who better meets our qualifications" and leave it at that?

I agree tenants should be reviewed on a per applicant basis but taking my analogy further what is the difference between a landlord saying no and a potential employer saying no because of a criminal record? If they change the law for one, wouldn't the other have to follow or am I completely off here?

Cheers,

Rob

@Nayeem Khan,

Were you able to get in touch with Bob?

If not DM me and I can get you in touch with co-workers who do this.

Best Regards,

Rob

@Michael Marcoux I don't know any bank that would give you a commercial loan on a 4 unit multifamily house, unless there was something that made it a commercial property, a 5th unit or a business / store of some kind.

If you want financing on this, you're going to have to go the conventional route or hard money. What Credit Unions or community banks are around you?

If you want specifics on the commercial loans a big bank would offer direct message me.

Cheers,

Rob

@Nayeem Khan, Reach out to @GR Blanke