Commercial loan for 6+ unit without land lordExperience in CT

[Kay Ferdous]

Can anyone advise in how to go about finding a commercial loan 6+ unit buildings? I'm currently looking at few properties that are between 6 to 10 units and Price range between 250k to 900k in Connecticut ( east hartford/new haven/new britain/bridgport). NOI and Debt ratios are Ok on these properties and I'm able to put down 20% to 25% but I dont have any landlord experience. Friend of mine suggested to find a sponsor with experience but besides that any other suggestions or is that my only option?

 thanks.

[Elizabeth Grahsl]

Banker here.  If you are able to put down 20-25%, you don't need a sponsor.  Sponsors are more typical in large ($10MM+) deals.  But any bank, even a small credit union, can gladly handle a real estate loan under $1,000,000. 

Banks care a lot more about the financials than they do about your experience level (although that does count for something and may be a slight added risk in your case).  However if you're planning to hire a property manager that will take care of that question.  If the income ratios work, and your credit is good, and you aren't sitting on a mountain of consumer debt, and you can put down 20% and still have some decent reserves leftover, they'll approve you.  Assuming the property appraises of course.

You just need to get a few quotes from banks to see what terms they'll offer.  Start with any banker you know, or ask your CPA or financial advisor for a referral, or just walk into the local bank where you do business and tell them you'd like to speak to a commercial banker about a loan.