Best Lenders for Multifamily

[Kim A.]

I'm looking to purchase my 1st multifamily property. I've flipped 4 houses & have a long-term rental. So, I have some experience. I'm wondering if I'd get a better deal & lower down payment options if I move away from traditional lending. I'm interested in hearing from investors about lenders you've had good experiences with, not lenders looking for clients. 

[Erik Estrada]

Hey Kim, 

If you are looking at 5+ Unit Multifamily you should start with building relationships with local banks and credit unions in your market. You will be able to find lenders that are a lot more "open-minded" especially if the multi unit is under $1 million.

Now if you are looking at larger deals, most commercial lenders are going to want to see some experience in this space specifically and a net worth to support the loan request. There is not a one size fits all in this space compared to residential 1-4 unit properties, so it definitely helps to really get out there and network with lenders, brokers, etc.. and see what everyone is offering. 

I will say though, that it is important to be vigilant as there are many lenders that will ask for a deposit and not necessarily be able to close on the deal.