I buy smaller multi-family properties. My strategy is: buy them, fix them up, rent them out and hold them. This is a great strategy for building cash flow and wealth. A great way to get the funds to pursue this strategy is to secure commercial loans.
I discussed commercial loans in a previous post. Here just let me reiterate that commercial loans are loans that are much more investor friendly. They can be used no matter how many properties you have, if you have an LLC or even several LLC’s.
Where does the smaller real estate investor find these types of loans?
Do not bother with the big banks, like Bank of America, SunTrust or Wells Fargo. They most likely are not going to talk to you unless your project entails several millions of dollars. Rather, you want to talk with the smaller, local community banks or credit unions.
Before the crash in 2007, almost anyone could get a commercial loan. Today, many banks are not eager to loan on real estate, but some are. You will just have to knock on several doors to find a bank willing to work with you.
How to Get a Commercial Loan
Here are some tips before you go knocking.
Get an Introduction – Try to get an introduction rather than cold calling if possible. If a good customer of the bank can provide a recommendation for you, it can really go a long way. This is one reason why networking with other investors is so important.
If You Cannot Get an Introduction– You are going to have to make a cold call. Ask for an appointment with …read more