Investor · Philadelphia, PA · Member since 2016 · 42 posts · 11 votes
Hi All,
A newer investor here. I'm looking to accelerate my growth here and I'm currently eyeing a 10 unit apt building in Indiana and I'm running into challenges with finding a lender. Probably because I'm not looking in the right places? Investor friendly banks that I'm aware and have spoken to only have products up to quadplex.
Any thoughts on where to pivot my search to? Much thnx!
Agreed. You are talking to the wrong people which is often the problem with working with banks. You are at the mercy of their experience and product knowledge. You need to speak to someone in the commercial loan department at several banks to try and get a competitive offer(s).
Talk to the commercial lending department of a local/regional bank. The fact that you are saying investor friendly lenders only do up to quads suggests to me you are talking to residential lending departments.
Agreed. You are talking to the wrong people which is often the problem with working with banks. You are at the mercy of their experience and product knowledge. You need to speak to someone in the commercial loan department at several banks to try and get a competitive offer(s).
@Keith Rorer Many times local bank's commercial departments prefer to lend to instate borrowers. Also many lender's have a population requirement of a minimum of 20,000.
@Karen Schimpf... Thank you for the insight. Indiana is a low entry barrier market with stable job growth. I started there with resi properties and recently decided to investigate the commercial side. I have "boots on the ground" already established (prop mgmt. and any maint/const needs), but I understand your statement. I'll find someone who will work with me eventually :)
hey Keith, I invest in southern Indiana currently. I work for Old National Bank. We are the largest bank holding company in Indiana. I can refer you to a lender. What city is the property located?
Try reaching out to some local commercial brokers, they usually know the banks that are lending money for commercial loans.
You will need to become friends with the brokers eventually, they tend to hold the keys to a most of the good deals.
A broker that I have been talking to over the past few months gave me some bank lender contacts that he knew were interested in financing the type of property I am targeting.
James, do you live in Indiana? Or is your company incorporated in Indiana? Our bank only lends to borrowers in our footprint and we don't have any branches or lend in Illinois.