Local community bank immediately told me no

3 Replies

I have been investing in single and small multi families for the past 18 months. I have 4 properties (8 doors) at this time and my track record with getting rent on time and raising rents has been excellent. I reached out to a small community bank that I’ve worked with on and off for over 10 years and asked to be put in touch with their commercial banker. I’m looking to buy a mid size apartment complex within the next 12 months. I called and emailed their commercial banker a few times and he never responded. I then got in touch with the residential banker I use and she asked him to please give me a call. His first response basically said they have very limited interest in lending to individuals with no experience (he has no idea what my experience is) but he would talk to me if I insisted. Is this normal for banks which investors have been relationships with? I’m going to give him a call anyway but I was hoping for some advice as how to approach the situation. I thought local community banks where I have established relationships would be the best place to start but I’m wondering if that’s not the case? Where should I start? I have excellent income, great credit, good rent rolls and will have the down payment to move forward once I find the right apartment complex.

Just out of curiosity, is your local community bank truly a local "community bank"?

I ask because I had a similar disappointing experience recently (kind of the opposite of yours - my commercial guy is great, the residential side terrible). 

My bank was previously a community bank, but was bought out a couple of years ago by a large regional multi-state bank. They are no longer a community bank at all, with all decision-making and underwriting done at corporate headquarters several states away here. Unfortunately true community banks are a dying breed, and the ones that got bought out are a shell of what they used to be.

I do have a guy here in FL who specializes in commercial multifamily loans nationwide if you'd like a referral, just PM or email me. 

Good luck!

@Aundrea Newbern ,

Sorry to hear that you're having push-back, but I wouldn't get discouraged. If you're determined to use this bank I would find another banker at that branch. Unfortunately, some people just have a 'punch-in, punch-out' mentality and see the idea of getting more business as a burden. 

If the building you are looking to purchase is less than 20 units, and you are looking to BRRR (Buy, Rehab, Refinance, Repeat) I know of a great resource in your area. There are also plenty of resources on this site as I'm sure you know.

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