Looking for investor friendly portfolio lenders in Cleveland

Investor-friendly agents in Cleveland, OH

See the agents BiggerPockets members work with in Cleveland, OH.

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Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
4y

Any reason you are looking for a bank/credit union over a private lender? Are you comfortable with qualification on DTI / personal financials?

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  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    4y

    Any reason you are looking for a bank/credit union over a private lender? Are you comfortable with qualification on DTI / personal financials?

    [email protected]
    Harpoon Capital514 Reviews
    WebsiteView Page
    2Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    4y
    Quote from @Eran S.:

    Anyone has experience with credit unions or local banks lending in Cleveland who can help with <$1m rentals portfolio purchase 


     I have a rolodex I can send you of different lenders my brokerage uses

    0Reply
  • Eran S.
    OP
    Member since 2019 · 10 posts · 7 votes
    4y

    Thanks for the comments, I never borrowed with a private lender in the past, they charge high closing costs and high rates and they don’t do a good job disclosing them up front. Also with paying application fees in advance it’s a lot easier for me to trust a bank than a person. I borrowed with credit unions before, I found the locals to have good pricing and they lend to my LLCs such that it doesn’t go on the count for the 10 cap for my conventionals. And I have no problem doc qualifying, I have great income, great credit, and lots of experience and equity.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    4y
    Quote from @Eran S.:

    Anyone has experience with credit unions or local banks lending in Cleveland who can help with <$1m rentals portfolio purchase 


     What kind of assets we talking here? Like a bunch of single family houses and duplexes rolled into one loan kind of thing? Or some large apartment buildings?

    0Reply
  • Eran S.
    OP
    Member since 2019 · 10 posts · 7 votes
    4y

    Small apartment buildings, 20 units in 4 locations

    0Reply
  • Nick BelskyBusiness Member
    Lender · Orlando, FL · Member since 2021 · 1k+ posts · 704 votes
    4y

    @Eran S.

    Sounds like you've encountered a few bad experiences with private lenders and/or Loan Officers.  That's a shame as they truly are more flexible in many ways, but not without their disadvantages as well.  I am licensed to do both conventional/agency and commercial/private in Ohio and don't see much difference at all in closing costs... so that's curious.  Private lenders are not regulated by TRID and therefore do not have to disclose anything to you.  Conventional/Agency are TRID regulated and require a whole lot more paperwork and disclosures by comparison.  A good broker would make this non-issue for you as they would ensure all details of the loan are discussed prior to you sitting down to sign.  If you ever go to a closing and are surprised by what is in front of you, someone didn't do their job!

    Keep in mind though, the lender is not usually the issue. It really comes down to your Loan Officer and/or broker. If they aren't top notch, you may be in for a rough ride. The lenders are normally all pretty much the same. Terms vary, pricing varies, sure... but the process is the same. Local Banks and CUs can have excellent terms at times, but beware of the structuring. Some of them get really weird terms. E.g 5/1 ARM on a 15 year Term, Amortized over 20 years with a balloon payment at year 5, 10 and 15 is one I saw recently. Be sure to fully understand what they are putting in front of you and don't be blinded by a low rate. Contrary to what many investors think, there most certainly are 30 year fixed rate, fully amortized loan options out there for commercial properties that are very competitive on rates and don't have any funny loan terms. They function just like conventional loans.

    If you are ever asked for an application fee, that is a major red flag too.  Run!  There are too many solid lenders out there that don't require fees up front.  The only thing you may need to pay for is the appraisal deposit which is totally normal.  Nearly anything else is suspicious.  Almost every commercial/private lender is not going to report to the credit bureaus and will close under your entity.  You cannot close a conventional loan under an entity.  Fannie/Freddie/Agency do not lend to businesses, only individuals.

    I hope you find what you are looking for.

    Cheers!

    [email protected]
    Belsky Mortgage, LLC521 Reviews
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