Commercial Lender for small multiunit in Bay Area

2 Replies

Hi BP Family, 

I'm located in California and I'm working on my first small MF property. I've done some SF, but are definitely virgin with MF. Looking for a good commercial lender to work on this deal and potentially future projects as well. Would love to get some input on this process from the community: 

1. Is it better to work with a local lender, or distant relationship is no issues here? 

2. How to decide on which lender you should send your private sensitive (tax, income) information to? 

3. Is it better to work with a Broker or directly with a lender? Hope to hear from both sides. 

4. What are some favorite lenders that BPers like to work with? 

Gonna stop the questionnaire here before we loose all the readers. Thank you everyone in advance ! 

Steven if the MF is 2-4 units you do not need a commercial lender. You can use a residential lender and get better rates. If it is 5 or more you need a commercial loan.

Local lenders tend to be able to work faster than out of state lenders. If your escrow is 45 days or less you should go with someone local. 

If you use a bank they will have encrypted ways to send sensitive documents. If someone does not have a protected way to upload documents pick someone else.

Brokers have more options. Bankers can give a stronger pre approval. They can send you through underwriting before you make an offer. Brokers don't do that because they don't know ahead of time which lender they will end up using. Brokers can see who has lower fees on any given day. Banks tend to have lower fees. As a listing agent I like to see pre approvals from banks or direct lenders. As a buyer's agent I like having the knowledge that my client actually can get approved for the amount of money they have been told they qualify for.

For commercial loans my clients use local banks live AVID Bank in Palo Alto or Comerica.

For residential loans I like Bank of America right now. 

Thank you Marcy, very informative! I will start looking for local banker. You're from Mountain View, one of my favorite city. Will PM you to learn more about our area. 

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