A guest on Rob Rowsell’s ATL Inner Circle Community call asked why Rob made his choice in a “residential or commercial investment” quandary. In short, residential units were a proven commodity in this space. The bank would not loan Rob and his investors money to renovate and set up a commercial business on the property.
Residential or Commercial Investment? You May Not Have A Choice!
Dave chimed in to ask about a property Rob detailed earlier. He asked why Rob chose to develop multifamily residential units, rather than the commercial business that previously operated there. What drove that decision? Turns out it was the bank.
Rob initially planned on renovating the space for a new commercial endeavor. However, the lending institution wouldn’t go for it. Despite plenty of research on what Rob and his team could charge for the business space, the previous owners never make the most of it. In fact, those investors had left the commercial space unfinished and inoperable, content with income from the second floor apartments. The previous history of underachievement scared the bank out of another commercial investment.
Rob and his investment team went back to the drawing board. They crunched the numbers on remodeling the downstairs commercial space into new multifamily dwellings. This time, the bank agreed to the loan, so the group could move forward. Despite being deep into a PSA, the new plan will actually generate more profits. Win-win!
Join Our Multifamily Investing Community Today
Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!
