I am looking to move into the multifamily space in the Twin Cities and am looking for good local banks for some financing.
Anybody have any advice on either great relationships you have built or some places to avoid?
What sized multifamily?
Jordan Moorhead, Real Estate Agent in MN (#40542303)
Hi Jordan, I’m looking in the teens to twenties
Firefly credit union
First American Bank
To avoid: associated bank and Wells Fargo
If your loan will be over $1mm then go after non-recourse Fannie/freddie
Lakes Area Bank also. Not crazy about US Bank myself but my many years old experience probably isn't as valuable as Todd more recent one. I have a client working with Northeast Bank and so far they sound pretty good. Anybody have any experience with them?
Heidi Pliam, Attorney
Eagle Valley in Stillwater is who I had used for all my deals. They are amazing to work with and it's always nice talking to the person making the decisions instead of a middle man.
Feel free to reach out. I can give you my insight.
Currently have large multifamily with TCF, American Heritage, US Bank (like to use for HOA), Highland Bank, Bridgewater, Berkadia, Grandbridge, RCU, Highland and Wells Fargo....probably missing one.
I am happy to share experiences and contacts. Also have a ton of lender/broker contacts that I refer based on investor goals to ensure it is a good fit.
Michael Tempel, Broker
One I haven't seen mentioned that I really like is Signature Bank in Minnetonka.
I second @Todd Dexheimer . As with any organization, the timeliness and work product also depends on the loan officer. DM Todd or another local with specific loan officer options too. Local banks that "hold the note" typically take a more entrepreneurial approach than national banks with more "check the box" standardized approaches that may seem strange at times for 10-20 unit multifamily, such as a required $5,000 Phase 1, etc. Local banks, such as bridgewater, also hold notes on hundreds of local multifamily properties, thus may understand better that higher rents can and will be achieved for an under performing property. Once you establish communication with a bank it is your call. Some investors practice scorched earth with open bidding between many lenders looking to shave 10 bps and fees, appraisal fee, etc. Others seek a couple options and seek to build a long term relationship. If you are a first time multifamily investor without significant stock or real estate assets, you won't have much leverage. Investor leverage with local banks can also be found in the capacity to move significant deposit accounts their way that maintain high balances +$100,000. So if you moved successful business banking deposit accounts their way, you will open doors at the bank. Good luck!
Talk to @Jeremy Hoese at FlagShip Banks... I have all my units through him. Always bank with other investors if possible.
I have a 12 unit through them and they treat me right.
@Thomas Hartman I haven't seen the bank that I've been working with lately mentioned. I've been working with Alerus Financial. The guy I've been working with has been great and they have done some creative financing options for me. Please feel free to pm me, and I'd be happy to share the contact information of the guy I've been working with at Alerus.
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