North Hollywood, CA · Member since 2012 · 34 posts · 3 votes
Hi everyone!
So I currently hold a small mixed portfolio of SFR, duplexes, triplex and fourplex in Bakersfield, California but I would like to scale up to apartments. For my first apartment building I'm looking into 20-40 units.
So in listening to a real estate book by Joe Fairless, he recommends establishing a relationship with a lender first and specifically that this lender specialize in the type of apartment investing that I'm looking into.
I live in California and I plan to invest out of state but I haven't fully decided where. I've considered Texas, Arizona and Kentucky but seriously I have no idea just yet. With that said, my question is should I use a California based lender or should I focus on finding lenders in the areas of potential investing?
Any and all feedback regarding getting started with apartment investing is much appreciated.
Hi @Gustavo Gonzalez - Depends on what you're looking for. For the best rates a lender local to the area is best. If getting approved is top priority you need to find a commercial lender that is more flexible than a traditional bank. I've used a private capital group that lends based on the asset and not the borrower. pm if you want to discuss.
Gustavo Gonzalez lenders are licensed by States. They are lender who are licensed tin other state(s) in additional to their state of practice. They are many lenders in California who are licensed to lend in Arizona or Nevada...etc. if your lender is licensed in any of those states you have mentioned, then work with them since you already know them. If not, find some with license in those states and BP members can help you to locate them.
@Gustavo Gonzalez, The primary focus is finding the "right lender". I bet that half the investors here would say simply invest with some local seeing the importance of face to face contact and first hand knowledge of the market, while the other half would put the focus on finding a lender who, like you said, has a niche in the investments you're really looking for. I don't personally see the necessity for a local lender... An experienced lender will be able to recognize a good deal and be able to help you all the same, IMO. Others might disagree.
You mentioned that you're interested in finding a lender who "specializes in the type of apartment investing that you're looking into". What type of apartment investing do you mean by that? Is it simply the size? or is there a niche you're interested in within the 20-40 unit apartment complexes? Just curious, it might help someone jump in here.
Hi @Gustavo Gonzalez I'm a commercial loan officer from Orange, CA and I specialize in multifamily financing. At my company we have the ability to lend nationwide. I've actually closed a few multifamily deals in Tyler, TX and in Phoenix, AZ over the past few months. Most of the clients I work with get into apartments with a value add opportunities. While I typically focus in the Los Angeles Market, I work with a few clients that like to invest out of state. To answer your question you do not need to use a lender from a specific state. Let me know if you have any questions about investing out of state, I'd like to help you out anyway I can.
I have a partnership opportunity for a multi-family apartment complex in East Texas. I have a client who currently owns hundreds of units, but is looking for a 50% partner to come up with 50% of cash for down payment and renovation. Need about 500k to participate. Let me know if you are interested.