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.
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.
Why doesn't the person (s) you have relationship with help move things along for you?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing