Looking at refinancing mortgage on a 24-plex in Montana

Looking at refinancing mortgage on a 24-plex in Montana

Rental Property Investor · Los Angeles, CA · Member since 2014 · 120 posts · 88 votes

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?

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Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes
12y

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.

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  • Rental Property Investor · Brookline, MA · Member since 2013 · 1k+ posts · 777 votes
    12y

    @Mark Mosch 

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

  • Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes
    12y

    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.

  • Investor · Great Falls, MT · Member since 2014 · 163 posts · 132 votes
    12y

    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.

  • Rental Property Investor · Los Angeles, CA · Member since 2014 · 120 posts · 88 votes
    12y

    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!

  • Investor · Great Falls, MT · Member since 2014 · 163 posts · 132 votes
    12y

    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.

  • Real Estate Lender and Broker · Dallas, TX · Member since 2013 · 966 posts · 500 votes
    12y

    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

  • Real Estate Lender · Atlanta, GA · Member since 2014 · 48 posts · 9 votes
    12y

    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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