I just received the confirmation for my loan approval and I can’t tell you how overwhelmed I am for your this great gesture. This was a very crucial moment for me as my deadline for paying my college fees was approaching. I am a scholar in college and I have high hopes for my future, thanks once again Alexander.
Kudos for the video content! Apologies for the intrusion, I would love your opinion. Have you thought about - Bonincoln Wordless Authority (do a search on google)? It is a great one of a kind product for getting finance for your business minus the headache. Ive heard some awesome things about it and my m8 after a lifetime of fighting got cool results with it.
Excellent Video! Sorry for butting in, I am interested in your opinion. Have you thought about - Bonincoln Wordless Authority (do a google search)? It is a great one off product for getting finance for your business without the hard work. Ive heard some great things about it and my cousin after a lifetime of fighting got great results with it.
06:35 Got the loan but had to abide by a couple of conditions... Everybody's got to do what they have to do to scale in real estate... That's a small price to pay to start getting that credibility. Nicely put. Put in the work, time, and sacrifice, and reap the rewards later.
I wish the production department at BP would eliminate, or at a minimum significantly reduce the volume level of the repetitive and distracting background jingles they mix with the video. Can you imagine listening to one of their weekly podcasts with the same inane music playing at the same volume level as the hosts/guest, for an hour?
Question - My young adult kids (19 and 18) would like to purchase their first commercial property. Are there programs that help support their vision/dreams to purchase while in college and without income? Thank you!
So you would reccomend going to a mortgage broker to help finance an investment property, with commercial real estate down-payment requirements are 25-30 down, and do funds have to be seasoned for 30 days?
The answer is that it depends. Lots of lenders like to see ownership/management experience and will get more comfortable if they know you have a handle on that aspect. This is more in the life company, agency realm (Fannie, Freddie and HUD). These lenders don't ask for tax returns. They will want to verify liquidity, net worth and experience of the borrower. They'll pull credit and do a general search on the borrower to discover bankruptcies, judgments, liens etc. Banks and credit unions will want to review your tax returns, at least the last 2 years probably 3.
Cash flowing properties over your W2, which indicates management experience. But these are both secondary. Primarily the banks look at the property itself for the loan and whether your numbers makes sense (NOI, DCR, etc.) Your income/management experience is secondary because you are not expected to make payments on the loan from your own personal income, but from the cash flow of the property itself. After they know it’s a solid cash flowing property, they will want to know you are a safe bet. (Good management experience, good credit score, high net worth, etc.). With residential mortgages, it’s reversed.
I am a business owner and owner of my three businesses and paying rent. It’s clear I should invent in the property as the business or businesses in the commercial real estate can pay for the mortgage. I just got denied for paying $64 sq ft $8000/Mnt for 1500 sq ft) for retail space, not because of financials but since fitness is a tough business during covid. I need some guidance sir. What do you recommend?
My lender made me agree to 3rd party property management. What happens when all the prop management companies don’t cut it. I can do a better job than they can but my bank won’t let me manage a prop that I own.
I don’t know what area you are in, but if in the US, Konover Properties, WinnRes, Trio Properties are a couple larger, good companies. Although there is no standard, I’ve seen a Mgmt company have great people in one city and have a completely different standard in another. Good luck
I'm new to the field, but couldn't you start your own single person property management llc and have them (you) do the managing? From what I understand it could be a tax write off and you could do the same for all your other properties. If I'm completely wrong about anything in here please let me know because I'm still learning.
so its not "law" or carved in stone you have to have 20% down all the time? some lenders will just stipulate xyz and you can ask to borrow with no money down?
Do you get commitments for the equity piece before or after you bring the deal to your mortgage broker? I would love to know more about how the timing on that works amd whether ot makes a difference.
I have a question. I have a business partner who owns 8 rental properties all paid off. Are we able to get a commercial loan from those properties to build a shop/warehouse for our other businesses?
That may be possible. Not sure if you and your partner are still in need of this, but it sounds like you could use a bridge loan. Basically for the pro ARV fix and flip types or for people that have cross collaterization (such as the equity in you all’s 8 properties) and can leverage that for a loan. I’m a broker and can help you if you’re ever in need. Just shoot me a msg. Good luck!
Im trying to purchase my first commercial property. I wanted to know do you know any thing about using VA business loans to get into commercial real estate.
I'm a little lost, been doing the math on some made up numbers and also been using numbers from a real property for sale. I'm trying to find how much money will go into my bank account after aaaall the deductions
Great video thanks we just sold our 1st duplex 2 weeks before this pandemic and now we are looking to break in to commercial. I appreciate your information. #stovetopyumyum
Rasheed - They will be used only for collateral purpose. Underwriters don't think as average joe owning 10 homes. Underwriters know that 50 MIL loan can only be serviced by cash flow from deal so regardless you bring 65 homes with cracked basement and bunch of international students living as tenants in those homes or you bring 10 homes in elite neighborhood of Malibu Los Angeles, Bank will only use them as Collateral. The deal has to be juicy enough (juicy means NOI Net Operating Income) to not only support interest and principal of installment but also should cover property management expenses, janitorial staff salaries, repair bills. Plus Bank will like to see 1 year worth of property management expenses readily available in form of cash reserves so to support a 100 door apartment building you need Property Manager Salary 70,000 USD Assistant Manager 60,000 5 Janitors 40,000 yearly salary X 5 = 2,00,000 2 Leasing Agents yearly salary X 50,000 = 100,000 3 Plummer/ Maintenance Personnel = 50,000 X 3 = 150, 000 TOTAL = 580,000 So about 5,80,000 cash reserves should readily available to support salaries and expenses of Property Management staff regardless of rate of occupancy in apartments. This budget can be reduced if building is brand new and doesn't require multiple janitors and maintenance personnel.
This pooling of assets or bundling 10 homes is not possible as human owner. There must be a REIT (Real Estate Investment Trust) formed and very small number of lender will give respect of REIT to average joe owner. The sad part is that when Fannie or Bank or Credit Union pool assets or bundle properties and contracts together, they can raise capital against it but average joe can't do it until reach a significant valuation.
Good evening Sir, I'm looking to get started in commercial real estate. Exactly a 6 to 10 unit apartment building. I've never done anything in real estate before. ¹Do you think this is to much for a nubi or should I go for it? ²Since this virus my income has shifted. Should I hold off until later or go for it? ³My dad's house is in much needed repair and I was thinking of flipping it since it's paid off and possibly selling it. The house is located in the Atlanta area.
i have two commerical properties that bring in good income...one is free and clear...looking to use it for collateral to buy another four unit...whats ur point of view?
I'm applying for my 1st Commercial loan on a Multifamily thru a Credit Union in my area. I'm actually trying to do a 1031 from the sale of a residential into the commercial but I'm STUCK on the Business portion of the application. My in-state LLC which is disregarded and member managed )my out-of-state Holding company in which I'm a 50 % owner too, was just started in February of this year. Do I put my LLC as me owning it or my Holding company?
Put the entity incorporated in state of commercial property for which application is being made means the LLC which is incorporated in your state. Credit Unions/Bank prefer in-state entities as jurisdictional similarity gives them extra legal control on borrower entity in the event of default and chargesheets. If you want to keep owner LLC - operator LLC structure, you may need to incorporate holding entity in same state.
That's a great questions. If you're talking about amortization than absolutely. However, to my knowledge commercial loans have 5 or 10 year terms typically.
@@JesseFragale Thank u. I was speaking to terms. All I have found is 20-30 amortized loans over 5-10 year terms. My question is what is the typical process then for an investor. Simply refinance over and over to buy more time?
@@ghedlomkiros318 there are insurance company loans that are fully amortized, I've seen up to 20 years fully amortizing or FHFA / HUD loans that are fully amortizing over 35-40 years depending on the loan product. Investors generally refinance at the end of the term, often trying to negotiate better terms with the lender as the principal amount has usually been paid down over the term and hopefully the asset has appreciated in value
Hello, I have been looking for a commercial lender to even call me back. I just bought my first property and I have $100k more to invest. I prefer a multi family home. Any idea where I can find lenders?
Hello - I have secured a commercial mortgage at 3.5% 10-year fixed ARM for a 8-unit multi-family apartment. Any thoughts on the terms in today's market? Thanks.
Videos like this are making Federal Reserves increase interest rate as too many average joes are getting inspired by these videos and trying to get in commercial real estate. This knowledge used to be available only to CPAs, Lawyers and certain investors and nowadays every Pizza deliver driver and cab driver is browsing LoopNet and finding commercial deal.
8 unit means you will not survive in long term. in the game of commercial real estate and to scale it properly, never go less that 32 door. You will be sitting on craigslist all the time finding tenant once 2 move out and to service the loan, you will have to work hard towards finding tenants in case of low occupancy. Never go less than 32 door if you are beginner. If you already have multiple multifamily buildings then it is okay but as a starter with fake name John Doe while we all can smell chicken tikka masala or some shawarma don air in your sentences, you are bound to loose!
I absolutely can't take advice from anyone that says rezorse (resource) and then in the next sentence says source correctly like a sane person. Why not commit and say zorse at that point? 🤔
Seems every dang bank wants you to apply but if you don't qualify they just say sorry. NO advice. This should be criminal IMO. If they can tell you where the deal failed they should not let you apply!!!
This was an awful video that seemed more like an attempt to flex one’s knowledge of different types of lenders, when this information is not useful to 95% of beginning investors. There is absolutely ZERO benefit of getting so technical. Keep the content related to your video topic or you seem like someone trying to sound smart but failing, as you don’t know the subject well enough to break it down simply.
Emilio Balreno Maybe not the best video for the complete beginner, but useful for people who have done this a few times already and wanting more detail like myself.
How to get a commercial loan? 1-Have collateral 2-20% cash down 3-credit scor of at least 650 4-proof of income from your business 10 000$ a month-"minimum" or having already a full time job that justify your "new"income project that you are buying that commercial/retail space. Oh yeah, I ,,,work in a bank in the credit approval. Too many fakers on youtube.
I just received the confirmation for my loan approval and I can’t tell you how overwhelmed I am for your this great gesture. This was a very crucial moment for me as my deadline for paying my college fees was approaching. I am a scholar in college and I have high hopes for my future, thanks once again Alexander.
What should Jesse's next video be?
Let us know in the comments!
How to quickly underwrite a small apartment between 20-100 units under 15mins
How to make a video with out music on the background
The background music is a nuisance!
Kudos for the video content! Apologies for the intrusion, I would love your opinion. Have you thought about - Bonincoln Wordless Authority (do a search on google)? It is a great one of a kind product for getting finance for your business minus the headache. Ive heard some awesome things about it and my m8 after a lifetime of fighting got cool results with it.
Excellent Video! Sorry for butting in, I am interested in your opinion. Have you thought about - Bonincoln Wordless Authority (do a google search)? It is a great one off product for getting finance for your business without the hard work. Ive heard some great things about it and my cousin after a lifetime of fighting got great results with it.
06:35 Got the loan but had to abide by a couple of conditions... Everybody's got to do what they have to do to scale in real estate... That's a small price to pay to start getting that credibility.
Nicely put. Put in the work, time, and sacrifice, and reap the rewards later.
I wish the production department at BP would eliminate, or at a minimum significantly reduce the volume level of the repetitive and distracting background jingles they mix with the video. Can you imagine listening to one of their weekly podcasts with the same inane music playing at the same volume level as the hosts/guest, for an hour?
Question - My young adult kids (19 and 18) would like to purchase their first commercial property. Are there programs that help support their vision/dreams to purchase while in college and without income? Thank you!
It's easy to see how much hard work you put into your generousity toward others. You’re good respected Alexander
So you would reccomend going to a mortgage broker to help finance an investment property, with commercial real estate down-payment requirements are 25-30 down, and do funds have to be seasoned for 30 days?
Good one bigger pockets. This is a great help for us.
Thanks Shane!
@@JesseFragale , this is helpful. Thanks! Please, consider a longer and more in depth video next time.
REalexpeditetools,com helped me out with a transfer of $20,000 added to my account .
All thanks to realexpeditetools com i received a transfer of $28000 added to my account .They are awesome.
What is more important to have when applying for commercial loan high W2 income or cash flowing properties?
The answer is that it depends. Lots of lenders like to see ownership/management experience and will get more comfortable if they know you have a handle on that aspect. This is more in the life company, agency realm (Fannie, Freddie and HUD). These lenders don't ask for tax returns. They will want to verify liquidity, net worth and experience of the borrower. They'll pull credit and do a general search on the borrower to discover bankruptcies, judgments, liens etc. Banks and credit unions will want to review your tax returns, at least the last 2 years probably 3.
Cash flowing properties over your W2, which indicates management experience. But these are both secondary. Primarily the banks look at the property itself for the loan and whether your numbers makes sense (NOI, DCR, etc.) Your income/management experience is secondary because you are not expected to make payments on the loan from your own personal income, but from the cash flow of the property itself. After they know it’s a solid cash flowing property, they will want to know you are a safe bet. (Good management experience, good credit score, high net worth, etc.). With residential mortgages, it’s reversed.
Realexpeditetools/com helped me out with a transfer of $28,000 added to my account .They are awesome.
I am so thankful to realexpeditetools,com .They sent me a transfer of $28,000 yesterday
I am a business owner and owner of my three businesses and paying rent. It’s clear I should invent in the property as the business or businesses in the commercial real estate can pay for the mortgage. I just got denied for paying $64 sq ft $8000/Mnt for 1500 sq ft) for retail space, not because of financials but since fitness is a tough business during covid. I need some guidance sir. What do you recommend?
Hi, how much downpayment do you need for commercial loans? 5%, 10%, 20%...?
30% 😬
My lender made me agree to 3rd party property management. What happens when all the prop management companies don’t cut it. I can do a better job than they can but my bank won’t let me manage a prop that I own.
I don’t know what area you are in, but if in the US, Konover Properties, WinnRes, Trio Properties are a couple larger, good companies. Although there is no standard, I’ve seen a Mgmt company have great people in one city and have a completely different standard in another. Good luck
@A. Guyton Righto! Sad but true!
The best that you can do in a scenario like that (albeit not ideal), is be a more involved "asset manager"...managing the manager.
atowndown I have never heard of this before. How many total units?
I'm new to the field, but couldn't you start your own single person property management llc and have them (you) do the managing? From what I understand it could be a tax write off and you could do the same for all your other properties. If I'm completely wrong about anything in here please let me know because I'm still learning.
What if I need a loan for raw land for soccer fields. Im currently reletting fields and cash flowing great. Thanks in advance
Good info!! Keep them coming!
so its not "law" or carved in stone you have to have 20% down all the time? some lenders will just stipulate xyz and you can ask to borrow with no money down?
Great work Jesse, this was a valuable summary.
Do you get commitments for the equity piece before or after you bring the deal to your mortgage broker? I would love to know more about how the timing on that works amd whether ot makes a difference.
How can I get listings of res comm in different states?
What is the benefit of getting a loan as opposed to back end financing
Thank you!
You're welcome Austin
Great and succinct info. Thx!
I have a question. I have a business partner who owns 8 rental properties all paid off. Are we able to get a commercial loan from those properties to build a shop/warehouse for our other businesses?
That may be possible. Not sure if you and your partner are still in need of this, but it sounds like you could use a bridge loan. Basically for the pro ARV fix and flip types or for people that have cross collaterization (such as the equity in you all’s 8 properties) and can leverage that for a loan. I’m a broker and can help you if you’re ever in need. Just shoot me a msg. Good luck!
Good content! Lots of valuable information and real estate vocabulary ☀️
Im trying to purchase my first commercial property. I wanted to know do you know any thing about using VA business loans to get into commercial real estate.
What if you don't have any support?
Can you do a video on sellers disclosure in commercial real estate please?
Thanks to realexpeditetools com i received a transfer of $20,000 added to my account .They are remarkable.
Great insight..
Which is the best for industrial space. Multiple bays?
I'm a little lost, been doing the math on some made up numbers and also been using numbers from a real property for sale. I'm trying to find how much money will go into my bank account after aaaall the deductions
Nice info
Thanks man I appreciate. I found an amazing commercial deal but couldn't find a lender. I will try your advice.
So you couldnt find a lender that liked the deal? What was their rationale?
@@JesseFragale ...the usually want a history of being a landlord, that's most peoples problem..
What is that instrumental during the video? Original production?
Great video thanks we just sold our 1st duplex 2 weeks before this pandemic and now we are looking to break in to commercial. I appreciate your information. #stovetopyumyum
Great info. After 10 homes on personal credit is it possible to get commercial loan and fold them in?
Rasheed - They will be used only for collateral purpose. Underwriters don't think as average joe owning 10 homes. Underwriters know that 50 MIL loan can only be serviced by cash flow from deal so regardless you bring 65 homes with cracked basement and bunch of international students living as tenants in those homes or you bring 10 homes in elite neighborhood of Malibu Los Angeles, Bank will only use them as Collateral. The deal has to be juicy enough (juicy means NOI Net Operating Income) to not only support interest and principal of installment but also should cover property management expenses, janitorial staff salaries, repair bills. Plus Bank will like to see 1 year worth of property management expenses readily available in form of cash reserves so to support a 100 door apartment building you need
Property Manager Salary 70,000 USD
Assistant Manager 60,000
5 Janitors 40,000 yearly salary X 5 = 2,00,000
2 Leasing Agents yearly salary X 50,000 = 100,000
3 Plummer/ Maintenance Personnel = 50,000 X 3 = 150, 000
TOTAL = 580,000
So about 5,80,000 cash reserves should readily available to support salaries and expenses of Property Management staff regardless of rate of occupancy in apartments. This budget can be reduced if building is brand new and doesn't require multiple janitors and maintenance personnel.
This pooling of assets or bundling 10 homes is not possible as human owner. There must be a REIT (Real Estate Investment Trust) formed and very small number of lender will give respect of REIT to average joe owner. The sad part is that when Fannie or Bank or Credit Union pool assets or bundle properties and contracts together, they can raise capital against it but average joe can't do it until reach a significant valuation.
Great video. Can you cover how much down?
First comment I love biggerpockets
Thanks Mikhail!
Good evening Sir, I'm looking to get started in commercial real estate. Exactly a 6 to 10 unit apartment building. I've never done anything in real estate before. ¹Do you think this is to much for a nubi or should I go for it? ²Since this virus my income has shifted. Should I hold off until later or go for it? ³My dad's house is in much needed repair and I was thinking of flipping it since it's paid off and possibly selling it. The house is located in the Atlanta area.
Where the Balance Sheet lenders?
Am I the only one who thinks he’s totally HOT 🔥
i have two commerical properties that bring in good income...one is free and clear...looking to use it for collateral to buy another four unit...whats ur point of view?
Hell yea!
I have been having a tough time getting a lender to even call me. May you tell me the name of the lender please?
What do you mean Come with a deal? when talking to a broker? How do you structure this deal?
Get the numbers...
I'm applying for my 1st Commercial loan on a Multifamily thru a Credit Union in my area. I'm actually trying to do a 1031 from the sale of a residential into the commercial but I'm STUCK on the Business portion of the application. My in-state LLC which is disregarded and member managed )my out-of-state Holding company in which I'm a 50 % owner too, was just started in February of this year. Do I put my LLC as me owning it or my Holding company?
Put the entity incorporated in state of commercial property for which application is being made means the LLC which is incorporated in your state. Credit Unions/Bank prefer in-state entities as jurisdictional similarity gives them extra legal control on borrower entity in the event of default and chargesheets. If you want to keep owner LLC - operator LLC structure, you may need to incorporate holding entity in same state.
Are there any 30 year commercial loans?
That's a great questions. If you're talking about amortization than absolutely. However, to my knowledge commercial loans have 5 or 10 year terms typically.
@@JesseFragale Thank u. I was speaking to terms. All I have found is 20-30 amortized loans over 5-10 year terms. My question is what is the typical process then for an investor. Simply refinance over and over to buy more time?
@@ghedlomkiros318 there are insurance company loans that are fully amortized, I've seen up to 20 years fully amortizing or FHFA / HUD loans that are fully amortizing over 35-40 years depending on the loan product. Investors generally refinance at the end of the term, often trying to negotiate better terms with the lender as the principal amount has usually been paid down over the term and hopefully the asset has appreciated in value
@@TheDurden84 thanks bro! Would u have any examples. I would love to call and get more info!
Ghedlom Kiros
www.northmarq.com/cities/san-francisco/
great content
Hello, I have been looking for a commercial lender to even call me back. I just bought my first property and I have $100k more to invest. I prefer a multi family home. Any idea where I can find lenders?
If you can’t get a lender then you might want to start networking and finding private lenders
I can help you out email me at malexander@rhfunding.com
Yes , Private lender will be helpful for you.
Hey nice info but the music is distracting
Hello - I have secured a commercial mortgage at 3.5% 10-year fixed ARM for a 8-unit multi-family apartment. Any thoughts on the terms in today's market? Thanks.
I have been having a tough time getting a lender to even call me. May you tell me the name of the lender please?
Videos like this are making Federal Reserves increase interest rate as too many average joes are getting inspired by these videos and trying to get in commercial real estate. This knowledge used to be available only to CPAs, Lawyers and certain investors and nowadays every Pizza deliver driver and cab driver is browsing LoopNet and finding commercial deal.
8 unit means you will not survive in long term. in the game of commercial real estate and to scale it properly, never go less that 32 door. You will be sitting on craigslist all the time finding tenant once 2 move out and to service the loan, you will have to work hard towards finding tenants in case of low occupancy. Never go less than 32 door if you are beginner. If you already have multiple multifamily buildings then it is okay but as a starter with fake name John Doe while we all can smell chicken tikka masala or some shawarma don air in your sentences, you are bound to loose!
I absolutely can't take advice from anyone that says rezorse (resource) and then in the next sentence says source correctly like a sane person. Why not commit and say zorse at that point? 🤔
Great content sir what's your paypal? I want to pay you (not being sarcastic) great info great value
Realexpeditetools sent me a transfer of $20000 just yesterday .So thankful to em fo rthe help .
Do they check income verification 😂😭😂🙈🙉🙊
Seems every dang bank wants you to apply but if you don't qualify they just say sorry. NO advice. This should be criminal IMO. If they can tell you where the deal failed they should not let you apply!!!
All thanks to ALEXANDER 🆙☝🏿for this 6BTC loan . I’m amazed at your great works sir
Haha second
👍
This was an awful video that seemed more like an attempt to flex one’s knowledge of different types of lenders, when this information is not useful to 95% of beginning investors. There is absolutely ZERO benefit of getting so technical. Keep the content related to your video topic or you seem like someone trying to sound smart but failing, as you don’t know the subject well enough to break it down simply.
Emilio Balreno Maybe not the best video for the complete beginner, but useful for people who have done this a few times already and wanting more detail like myself.
How to get a commercial loan?
1-Have collateral
2-20% cash down
3-credit scor of at least 650
4-proof of income from your business 10 000$ a month-"minimum"
or having already a full time job that justify your "new"income project that you are buying that commercial/retail space.
Oh yeah,
I ,,,work in a bank in the credit approval.
Too many fakers on youtube.