Looking at refinancing mortgage on a 24-plex in Montana

7 Replies

Having a hard time getting big lenders to look at this because Great Falls Montana is so small demographically. I last refi'ed this in 2010 but since then we've driven up NOI by 20% and there should be a substantial amount of equity in there. Anyone know any banks that might be doing cash out lending in some of these smaller metro areas?

@Mark Mosch  

Check with TD Bank.  They seem to lending on almost anything nowadays.

Check with the local banks...big banks don't do much with smaller commercial properties.  That's the sweet spot where the local banks come into play.  I usually shop loans around to around 8-10 different commercial lenders at local banks that I already have relationships/loans with.  I may only find one or two interested in the loan.  You've got to build some relationships or pay for a broker that has already established them.  Cash-out is harder to find, but more and more banks in my area are opening up to it.

I heard people sing the praises of local banks for quite awhile and didn't pay them much mind. Closing on a MHP/apartment complex deal here soon through a local bank. What a difference from working with Wells on my quads! It's almost scary how flexible/undemanding they have been. Wells had me writing letters for every little thing and wanted everything short of a blood test! I'm getting an 80% LTV 25 year amortized loan at 5% fixed for 7. Couldn't ask for a better commercial loan and it's been so hassle free it's hard to believe.

I'm using Bank of the Rockies but they don't have a Great Falls branch though they're in Helena. I know there is a First Interstate in town here as well as a Stockman. Those aren't quite as small as BoR but probably close enough. I know FI is being aggressive right now.

George - thanks.  I'll see if i can reach out to BOR...i'm working with FI now, but they don't like cash out.  I am using them for another property, though, that's a new purchase, and they are pretty easy to work with vis a vis Wells!

Interesting, I noticed FI was a also more demanding than BoR, they weren't gonna buy off on 80% LTV either and were definitely more thorough. But compared to Wells either is a win.

Mark,

What is the value of the property?  I work on apartment building loans, but typically dont go below 2 mil.  We offer non-recourse typically and would consider Great Falls, but again would have to be over 2 mil.

Mark C

Hi Mark, 

If you haven't found anything let me know. I know a couple of bank alt lenders with pretty decent rates and 25k minimum population requirements who lend on 5+ units in Montana.

Keith

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