Financing an Out-of-State Multifamily Property

9 Replies

Hey BP!

I'm looking into purchasing an 8-unit apartment building, but it's in a different state from where I live. I called several local banks in my area, and they are not interested in financing the purchase of an out-of-state property... I called several local banks close to the property, and they are not interested in financing the building for an out-of-state borrower. The only companies that I've found that would be able to help me are offering very high rates. Does anyone have a recommendation of a national commercial lender, who might be willing to lend on an 8-unit building for an out-of-state investor at a reasonable rate? I live in FL and I'm interested in investing in SC.

Thanks!

Wow Michael , a lender who can not get a loan.. Now I don't feel so bad. Good luck to you as I know commercial loans are different. Most deals that go down around Charleston, Greenville, and Columbia seem to have partnerships unless your rich, hang out with rich and can offer them a good return for the use of their Self directed IRA. Some of those folks may be willing to talk with you now since the stock market has been taking a beating since the beginning of 2016

@Christopher Schmidt yes it does!

@Ryan Koehler not ready to jump into the syndication game. I have SFR experience but I want to get my feet wet in multifamily and learn on my own dime before risking other people's money.

@Brock Adams I spoke with a few larger nationwide lenders who would work with me if the numbers were bigger... And a few up in SC that would work with me if I lived up there. I'm finding it's tricky to get a small commercial loan out-of-state.

Fannie Mae has a small multifamily mortgage program that goes to 75% LTV. You can get 15% more with mezzanine financing. That's 90%. Look for a Fannie broker.

I may be able to help.  If you would like to talk, please feel free to call or send me a time or number to visit.  We work with many lender's in this space.  Mark