Posted by ray@lcorn on July 07, 2002 at 12:30:10:
You don’t bypass single family residential regulations. They don’t apply to multi-family, so there is no need to bypass anything.
I suspect your relationship with BoA is in the form of several loans on SFRs? If so, that isn’t what I mean by relationship. I have found that banks like BoA are not suited for my business needs. I use primarly local independent banks, and I deal with the commercial lending side rather than the mortgage folks.
To do that you need a business plan showing what you’ve done and where you want to go, a financial statement of your present holdings, and a projection of how you will accomplish your goals and what your financial condition will look like along the way. Your pending deal with re-investing the 1031 proceeds is a great place to start. Take the time to think through what you want to do. Write it down. Then take the time to research a strong, business oriented local bank and its personnel. Contact the person in the highest position you can get to, even the President if you can. Then buy them lunch and use the opportunity to lay out your needs. After hearing you out, that officer is likely going to refer you to someone in the bank that will do the legwork necessary to get the accounts established. But because you started at the top, that puts them in the position of being overseen by their superior in how they handle you.
Lenders are in the business of selling money. We’re in the business of using money. There is a mutual interest there when the parties can establish that each knows what they are doing. Your job is to convey the fact that you know what you’re doing and where you want to go.
You might contact Ed about helping you with establishing a credit line. While that’s not the end all and be all of investing success, it is often the first step toward establishing a relationship with a lender on the basis of being in business rather than a passive investor.