Financing an Out-of-State Multifamily Property

Multi-Family and Apartment Investing
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Financing an Out-of-State Multifamily Property

Michael Smith
Real Estate Broker · Greenville, SC · Member since 2013 · 269 posts · 141 votes

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!

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Brock Adams
Chapin, SC · Member since 2013 · 73 posts · 19 votes
10y

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

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    @Joel Owens may have a suggestion.

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  • Joel OwensBusiness Member
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    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Arbor out of New York does small balance stuff.

    Additionally a work around I have seen on this small stuff it get a local partner and then you both go on the loan for the local bank. The bank does the loan knowing one of the partners is local and has "boots on the ground".

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  • Michael Smith
    OP
    Real Estate Broker · Greenville, SC · Member since 2013 · 269 posts · 141 votes
    10y

    Thanks @Joel Owens - I'll give Arbor a call. I'm personally not a fan of partnerships, just not my cup of tea.

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  • Ryan Koehler
    Arlington, VA · Member since 2013 · 115 posts · 40 votes
    10y

    Where in South Carolina? And you wouldn't consider syndication as a means to finance your 8-unit?

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  • Brock Adams
    Chapin, SC · Member since 2013 · 73 posts · 19 votes
    10y

    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

    1Reply
  • Christopher SchmidtPro Member
    Real Estate Agent · Melbourne, FL · Member since 2013 · 115 posts · 26 votes
    10y

    @Michael Smith does that 8-unit happen to be in Greer? =)

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  • Michael Smith
    OP
    Real Estate Broker · Greenville, SC · Member since 2013 · 269 posts · 141 votes
    10y

    @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.

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  • Account Closed
    Lender · Charlottesville, VA · Member since 2013 · 126 posts · 28 votes
    10y

    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.

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  • Mark Tapp
    Lender · San Antonio, TX · Member since 2016 · 22 posts · 10 votes
    10y

    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

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