Do you know an investor friendly bank for multifamily?

Question

Does anyone have any recommendations for an investor friendly bank for LLCs to invest in small multifamily properties? (between 2-15 units) My area of investing is NE Georgia starting from Athens up to Helen, GA

Brad Hayden · Answer

@Aaron White

If you’re working multiple deals in different markets, you might consider using a mortgage broker. They will have an established network of lenders and will know what lenders work in what markets and which ones are best suited for the specifics of each project. They can handle underwriting, loan package prep, and lender communications allowing you to concentrate on other important details.

Yes, I’m a professional mortgage broker and I work with both residential 1-4 and multifamily 5+ investment properties. If you’re interested, let’s connect and set up some time to answer any questions you might have.

Galen Ikonomov · Answer

I cannot give you a specific name of a bank, but I would recommend working with a Small Credit Union/ Bank. They will be more customer service oriented and can provide you with a lot of information regarding what you are looking for. Also they are less stringent when it comes to underwriting.

Shalini Kadaveru · Answer

Hi @Aaron White, when searching for banks for my investments, I will search at least the Top 10 or Top 5 well-known banks in the locality with good reviews/feedback. I will then see if they offer commercial and multifamily and if the terms are within my criteria. The last steps are to gather their contact info or the agents and reach out to them. After I talk to each of the banks' representatives, I'll have my final say on who qualified the most.

Frank Greg · Answer

@Shalini Kadaveru  This depends on what exactly you are 'investing' in. If an investment property involves any sort of rehabbing, traditional banks usually can't touch it unless you are looking to refinance a completed or stabilized project.

If you are an investor in  the rental space, usually any deal with cash flows and margins that make sense typically will have so many competing and spot cash offers that will require among other things, being able to move at a blistering pace to close in a matter of days. Most traditional banks are used to 30 to 45 day closings at a minimum and can't handle a closing in the 3 - 7 day range.

The opportunity cost can be quite high for the investor trying to use conventional funds on investments that involve a rehab, value adds, are unstabilized or requires a speedy close. Its not really their niche.

Adam Lacey · Answer

@Aaron White - I agree with all the people that have already suggested making relationships with small local banks and credit unions. One thing to consider though, is a lot of those small banks won't lend to you unless you live in the same state as the property. If you are investing out of state, you may have to bring in a loan broker or talk to larger regional banks that have a track record and strong appetite for the product you are acquiring.

Kevin Woodard · Answer

@Aaron White There are a lot of lenders out there that can lend on these types of scenarios. 1-4 units are in your single family home and 5+ is when you get into the multi-family with regard to distinction for loans.

Todd Olson · Answer

Lenders are broken down into residential loans of 1-4 family and then commercial lenders of 5+ doors. You could try asking your agent in the area to suggest a local community banker that does loans for one of the other. The broker should always have these connections. Best of luck in your journey.

Alex Bekeza · Answer

@Aaron White 2-4s will be easy with a huge array of options.  However, we stand out a bit by being able to do those smaller 5-20 unit buildings since we can do 30 year fixed on them as low as $250k (most lenders want to see a minimum loan amount of $500k or $1m on 5 + units or if they'll go lower it will often only be on short term money like 3, 5, or 7 year terms).

Georgui Kasaev · Answer

Ask for Dan Moore at American Pride Bank. 706-201-7320. Have had a great experience with him.

Jonathan Malnati · Answer

The Commercial Bank in Watkinsville - https://www.thecommercialbank.....  First Madison used to be good as well but I have not had any experience using them since they merged with UCBI.

Do you know an investor friendly bank for multifamily?

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