All Forum Posts by: Charles Carillo

@Nick Woeh

It is possible. I would speak to your accountant first. Then you would need to tell your broker so they can make the necessary changes and start paying your business directly.

@Patrick Harlow

10% is going to be difficult but, it all depends on your relationship with the lender. You want to reach out to every local bank and credit union in your area and see what programs they have available for small commercial multifamily properties.

I spoke to an investor a few years back that got a 5% down payment loan for a commercial multifamily property but, they had a relationship with the lender and a lot has changed in the past 2-3 years. I feel a low down payment these days for similar properties would be 20%.

@Chris Hu

I have never heard of paying for a CPA referral before. I would find another accountant right away. Ask other local real estate investors in your area who they use. Referrals from other investors is the best way to find most professionals, vendors and contractors.

@Michelle Hall

I would make sure that you are able to run your business out of this property prior to putting in an offer. You will setup a new separate LLC for just the property; don't use your current business' LLC to purchase this. I would speak to local banks and credit unions which will be a great fit to lend on this type of property.

@Nadeem Najam

I would post it on Craigslist and on other websites like Zillow. There are some paid services that will put it on all real estate websites for a small fee. Just between Zillow and Craigslist; you should be getting calls unless the property is priced too high or there are other unusual requirements you are requesting (i.e. 3 months rent for a security deposit). 

@Michael Keane

In my experiences with seller financing; there are 3 main parts to the deal. Interest rate, down payment and price. You need to find out what is most important to them and edit the other 2 so that it works. For example; the interest rate (cashflow) might be most important to them; give them a higher rate and then offer a lower price and lower down payment. If the most important part for you (down payment) and them are the same; the deal will not work out.

@Kyle Fielder

Yes, you need to purchase it in a separate entity. It is best for asset protection and best for taxes (minimizing FICA - ask your accountant).

You need to contact ALL local banks and credit unions within a 1 hour drive of the property. You will find many that will lend to you. Having a new LLC is not an unreasonable request on a new purchase. It is done all of the time by real estate investors but, you will need to personally guarantee the loan. I would also ask the seller to provide seller financing. The best scenario is to make 2 offers on the property; one (that is lower) that has you getting bank debt and the other (that is higher) where they seller finance it to you.

@Tim Carabine

I would look for another lender. There are some nationwide lenders for 1-4 unit investment properties that you can search out online. I am also a big fan of speaking directly to local banks and credit unions. Usually, they are best for 5+ apartment buildings and mixed-use buildings but it never hurts to reach out and start building a relationship with them. They might be able to work with you, if they see you as a long-term customer. I recently sold a portfolio of small multis and it was financed by a local credit union.

@John Woodhouse

I am happy it all worked out for you. When I was a new landlord (15+ years ago), I made deals like this that always ended poorly. This is no longer an issue today since we stick to the terms that we set and insist that our property managers do the same. It is much easier for a property manager to put their foot down when they are not the owner; compared with an owner renting a unit themselves. 

@Salvatore Lalicata

I personally always have an attorney setup our LLCs. It is a small price to pay to make sure it is setup properly.