All Forum Posts by: Rob Krach

@Joel Owens,

I appreciate the comment.

Without a license, not much money and okay credit how would you get started in multi family property investing?

thanks,

Rob

Hi All,

A couple of weeks ago I had it in my head that I was going to break into real estate by wholesailing.

I met someone from Biggerpockets and the jist of our conversations was as follows:

BP Member: Why do you want to be a wholesailer?

Me: so that I can make enough money to get into apartments and commercial real estate.

BP Member: Why waste your time doing wholesailing when that isn't what you really want to do?

Me: "light bulb goes on" damn you...

After thinking about it, he was completely right, so here I am and hopefully someone at BP can shed some light on the below:

I am at the point where if I don't take some action, and do it I am going to be that guy who is 50 who never did anything in real estate but is still looking for the first deal...

I went on LoopNet and Redfin, started finding 5+ units for sale. I reached out to several of the listing brokers and said "I will make an offer provided I get to have a sit down with the seller"

I have 3 of these meetings next week, and my goal is to get a multi family property with seller financing and as little money down as possible.

Is this where you would start?

What do I ask the sellers?

What docs / paperwork do I ask to see?

How do I structure this?

What terms should I be prepared to offer?

Is there anything I can do / say / ask to better setup for me to get a yes?

thank you BP and sorry for the longevity of this post.

Cheers and Happy thanksgiving,

Rob

Aaron,

Do you mind sharing how you found this deal?

thanks,

Rob

@Scott Trench Ha, I didn't see that but sincerely appreciate it!

Hopefully everyone had a great weekend!

As I still work in the city and commute via the train, I have a lot of time before and after work and I was curious what real estate books inspired you, motivated you, or were just an overall good read.

Thanks,

Rob

Hello all,

Along with my short term goals, I have the goal of getting started with rental properties here in Chicago and was hoping some who have gone through this could provide some insight.

My goal is to use a FHA 203k loan and ideally I would also love to use the welcome home IL $5000 down payment assistance for first time home buyers if anyone knows a lender who will do a 203k with the D.P.A. that would be incredible.

I recently contacted a lender who to avoid naming names sounds similar to bells bargo and was left with more questions and hesitations.

The questions I presented to them were:

1) Is my down payment calculated off of the purchase price plus repairs or just the purchase price?

they stated it is off the total

2) Is my closing costs based off of the purchase price or the purchase plus rehab and they stated total.

3) The LO I spoke with stated finding my own contractors would be recommended

4) I asked if there were restrictions on how much $$ could be allocated for rehab, he didn't have a firm answer but implied as long as the appraisal supported the work that I would be okay.

5) When I asked if I could also use the down payment assistance of $5000, they stated no.

6) As I would be looking at a gut rehab project so that I can find something within my price range and asked him how the 6months of mortgage payment deferral would work (HUD allows you to defer 6 months of mortgage payments into escrow in case you are not able to complete rehab and need to rent) he stated he was unsure but I would need to make all payments and they don't defer.

7) I have a line of credit with a credit union, as I know from my mortgage experience they are going to underwrite me as if the entire LOC is drawn I asked him if I can just apply that to the down payment and closing costs and again didn't get the best answer.

in my experience i would typically just go to a different lender but unfortunately with 203k loans, even a bank as big as bells bargo their regular LO's defer you to a FHA 203k specialist and i contacted two different LO's one near Rockford and one downtown and ended up getting the same guy for FHA 203k.

Any insight or advice would be sincerely appreciated! 

PS advice for areas in which to best look for my property will get you a Private Message containing a personal thank you!

Thanks in advance,

Rob Krach

Rob,

I work for one of the biggest banks in the world doing syndicated loans with a minimum loan amount of $500 Million. 

Typically even on a deal that I only syndicate to one other bank I have a 150 page credit agreement / 15 page note / CAP / Flood Docs / Insurance Docs / and that is just the tip of the ice berg

In addition, Syndicated Real estate transaction have so many compliance pieces that we have entire teams dedicated to them.

Very simply put a syndicated loan is one where there is a primary agent and that agent then brings in or syndicates the deal to other lenders to spread the risk. When you say you have investors who would like you spearhead their investments for you what exactly does that mean they want you to do?

I am not an attorney, this is not legal advise.

I reached out to the City of Palatine. I got the list but it is literally just the violation, no way of looking it up at all.

PNC secured card is excellent start, put $250 - $500 on and DONT use the card. in 3 - 6 months apply for cap 1 card.

additionally figure out if you belong to any credit union, they will accept a letter of explanation in regards to the BK and give a lot more credit than the big banks / card companies.

With the knowledge i have from working at a large bank I have helped a couple family and friends go from a bk to a very high 700 score in two years so if you have any other questions pm me.

I am not claiming to be an expert but have gone through this twice with people very close to me and they are both in incredible credit standings now.

Regards,

rob

Hi All,

I approached my city clerk, got a list of code violations and they partially denied my request blacking out the addresses as to not disclose information that would be an identifier.

Thoughts?