Reputable lender recommendations

15 Replies

Hi,

I’m new to bigger pockets and new to real estate investing.  I have been wanting to get into it for a while and feeling like now is the time.

I would like to start with a 4plex in the Oakland/berkely area. I’m looking to live in one of the units. My down payment would be 3.5%

I started looking for lenders that will approve me for this type of loan but there are so many. I prefer a private lender that can get the deal done fast. 

One company I saw that looks decent is quicken. Does anyone have experience with them? 

Any recommendations?

@Soul Luciani quicken is good for first time home buyers and residential mortgages. You should call quicken and another large lender plus call 5-10 local community banks or credit unions in the Oakland area so you can get the best pricing. Robert Friedberg with CMG Financial is in San Ramon and always educates clients so you might want to start with him. 

@Soul Luciani

I would doubt any of the big lenders will get the deal done fast. Conventional lending requires a lot of hoops to jump through. If speed is a priority of yours, talk to small local community banks in your area about a portfolio loan. While the rates will be a little higher, those loans can close fast. I've literally done deals where I provided lender info on the property, they then completed the appraisal, and then closed all in about a week and a half! (That's probably not the norm but can be done).

Hope this helps.

Also, on a side note, don't get discouraged if you don't receive a lot of lender recommendations. Many folks have built very strong relationships with their lenders and aren't quick to divulge their information because they don't know you, and if things go south, it's their reputation on the line.

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Originally posted by @CJ M.:

@Soul Luciani

I would doubt any of the big lenders will get the deal done fast. Conventional lending requires a lot of hoops to jump through. If speed is a priority of yours, talk to small local community banks in your area about a portfolio loan. While the rates will be a little higher, those loans can close fast. I've literally done deals where I provided lender info on the property, they then completed the appraisal, and then closed all in about a week and a half! (That's probably not the norm but can be done).

Hope this helps.

Also, on a side note, don't get discouraged if you don't receive a lot of lender recommendations. Many folks have built very strong relationships with their lenders and aren't quick to divulge their information because they don't know you, and if things go south, it's their reputation on the line.

first time investor owner occ 3.5% down wont get a portfolio loan and will take longer than a local mortgage broker.. this needs to be FHA. or VA.. one other thing to check and this is not fast but Naca I believe is in Alameda county.

@Jay Hinrichs

Not necessarily. My first loan was a portfolio loan...and every loan there after. I agree, it may be difficult for him to get a portfolio loan, but not impossible. EDIT: But he would need to put more than 3.5% down!

Originally posted by @CJ M.:

@Jay Hinrichs

Not necessarily. My first loan was a portfolio loan...and every loan there after. I agree, it may be difficult for him to get a portfolio loan, but not impossible. EDIT: But he would need to put more than 3.5% down!

 that was my point not for 3.5% down when you put 20 to 30% down all options are open.

although this is west coast.. so even in a bad area of Oakland a 4 plex is going to be north of 750k   

big difference between that and Ohio area values.. were you could snag a 4 plex for 100 to 200k easily every day of the week.. 

also out here local banks are far more conservative when it comes to loaning on small income properties..  Many simply will only do it for their top tier clients and no way for a beginner.. they don't need to.. they leave those loans to the big box national lenders and focus more on business loans..  its just very regional..  And bigger portfolio loans like through Blackstone or whatever they are running under I have had clients of mine refi out my stuff with them and those are very arduous loans to get they can get them and get great rates but its a full doc long process.. with a ton of loan stips.. 

Economies of scale, smaller return, you will put in the same amount of work to get a 4 unit as you do a 40 unit. 4 plex is more of a hobby. 40 unit is a business. Just research more. 

Originally posted by @Justin G.:

Economies of scale, smaller return, you will put in the same amount of work to get a 4 unit as you do a 40 unit. 4 plex is more of a hobby. 40 unit is a business. Just research more. 

I understand what you mean but I don’t have the down payment money for more than 4 units. Plus I don’t have the experience. I would like to start with a 4 plex and build from there.

Originally posted by @Justin G.:

Economies of scale, smaller return, you will put in the same amount of work to get a 4 unit as you do a 40 unit. 4 plex is more of a hobby. 40 unit is a business. Just research more. 

I know many people who got rich on 4 unit hobbies in the Bay Area. Bottom line is blanket statements/absolutes don't work in just about any aspect of life. A deal is a deal is a deal. There aren't necessarily certain attributes/characteristics that prevent deals from being worthwhile, unit count or otherwise.

Originally posted by @Robby Hogle:

@Caleb Heimsoth why? Worse than other large traditional lenders? Or just worse than local lenders?

 There’s a whole thread on this recently I was on.  Basically lots of fees, slow closing time.  

You’re welcome to try it out and let us know but I’m guessing that’ll be your experience 

@Robby Hogle

Hi Robby, Quicken is not the worse but I would deal with a broker instead of Quicken directly though as they’ll have more control of the “Fees” and “Closing time”.

When it comes to who is the best lender that all depends on your criteria and time of month as all lenders have different programs and pricing that fit everyone different.