Rental Property Investor · Green Bay, WI · Member since 2017 · 33 posts · 12 votes
Greetings all.
Later this week i'm sitting down with a commercial lender from a regional bank. I'm curious as to what questions any of you would ask or have asked in the past. I have my list but wouldn't mind adding a few others to it if they seem applicable.
Little back story, I'm newer to REI and am primed to move forward. Looking to B&H small multi family units as well as self storage.
Look forward to the discussion(s) and thanks in advance.
Also, if there's already a discussion or forum on this topic, i'll dive right in, but in my brief search, i didn't see one.
As far as Self Storage goes, the best piece of advice I can give is ask the bank what their appetite for self storage is, and when they answer, "We love self storage" ask them how many self storage deals they've closed on in the last year. Not all banks are created equal when it comes to a particular asset class. Bank A may promises better rates and terms, but if they haven't been able to close on a single self storage deal in the past year, that raises red flags for me.
How was the experience with the commercial lender? I'm a newbie just starting to speak with lenders in Milwaukee. I have a short list of questions to ask lenders, would you be willing to share some of yours?
Ask:
How do you educate new investors?
What type of support do you offer new investors?
What is your commission structure and fees? (min FICO, prepayment penalties, appraisal requirement)
What can I afford?
Refinancing (will they do it? seasoning period?)
Tell:
How do I provide value
My future goals
My current financial info (2 years tax return, pay stub, 2-3 month back statements, outstanding loan balances)