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.
@Joel Owens may have a suggestion.
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".
Thanks @Joel Owens - I'll give Arbor a call. I'm personally not a fan of partnerships, just not my cup of tea.
Where in South Carolina? And you wouldn't consider syndication as a means to finance your 8-unit?
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
@Michael Smith does that 8-unit happen to be in Greer? =)
@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