Real Estate Investor · Minneapolis, MN · Member since 2008 · 37 posts · 7 votes
I have 4 traditional mortgages and looking buy another multi-family or commercial investment property. I believe I need to find a bank that provides portfolio loans, right? Or smaller banks which hold the loan.
Any recommendations for banks in Minnesota... in or near Minneapolis?
I have over 5 years REI experience. It sounds good to work with a local banker and consider the investment itself rather than a deep dive of my debt to income. I understand I can hope for up to 70% LTV.
Lender · Newport Beach, CA · Member since 2013 · 264 posts · 97 votes
11y
As long as you're purchasing 5+ units and use an LLC or trust to buy, you don't need to worry about your source of funds. It could be a bank or portfolio who finances your commercial deal, as most all will consider it separate from your residential holdings.
Your debt service coverage ratio is more important and calculated property specific. If you can cover 1.20 or better, then you're in good shape. don't limit yourself to just regional players. Use a portfolio if you need exceptions for credit issues or faster closing. Use banks for more traditional products.
Real Estate Attorney · Minneapolis, MN · Member since 2015 · 11 posts · 0 votes
11y
Todd, you should talk to Thomas Jussila at TruStone Financial. They are a local credit union that holds your loan and Thomas is a pleasure to work with. He is always available, is a real estate investor himself, and really knows his stuff. He is in their Lyn-Lake branch in Minneapolis.