Your favorite Bank for Lines of Credit

Private Lending & Conventional Mortgage Advice
8yFollow

Your favorite Bank for Lines of Credit

Nick Matteson
San Francisco, CA · Member since 2011 · 5 posts · 1 vote

Hey BiggerPockets,

I'm looking for a really good bank for Commercial Lines of Credit:

-Longer term Line of Credit (10 years ARM, at least 20 Year Amortized)

-$250-500K range per property/line

-Rates mid 5% range

-Up to $1-1.5 million in total funds

- I need a bank that's good to operate across state lines. Specifically between CA and WI, and preferable more states in Midwest, South East.

Our situation:

We are looking to take 70% equity out of a several 4-10 unit apartment buildings that are free and clear, and use the money to continue growth by more purchases. 

We have excellent credit 758+ (but did have a short sale in 2012, its been ~6 years since that mistake.). 

We have ~100 units, so loan applications are tedious. I want to focus on solid recommended banks.

We live in CA, and the finance-able properties are in WI

We are checking out options now with Wells Fargo, Bank of the West, BMO Harris. 

Do any of you have a similar situation, and absolutely loves their bank for ease of getting Lines of Credit, and wants to give a recommendation?

Cheers, 

Nick

0Reply
22 views

2 Replies

Jump to latestLatest
  • Chris Youssi
    Rental Property Investor · Caledonia, IL · Member since 2015 · 290 posts · 213 votes
    8y

    Local community banks with $700M -1B+ in assets. A no brainer. My local lender crosses into Iowa and has deep pockets for larger deals however bread and butter are my smaller SFH.

    My terms LOC $350,000 4.5% interest only - they finance 100% of purchase price. I put in rehab costs - get it reappraised pay off my first loan get my rehab funds back and keep doing it again n again. So in reality unless I overspend on purchase or rehab I get in and out with no money down. We now have 30 wish I had 100 the easiest opportunity I have seen in quite sometime and have been in business for 30+ years. 8 are on fixed rates for 7 years fully amortized over 7 years now down to 6 years 7 months and the others are on fixed rates for 7 years with 13 and 14 year am's. Faster appreciation - easier to rent - higher rents - lower vacancies. 2016 vacancy rate was .92% last year was 1.24%.

    Local lenders have an easier time for approvals  / National lenders are expensive and too many layers. Another great source actually best kept secret are credit unions as they are not under the fed's guidelines like Banks.

    Best wishes - My thoughts

    4Reply
  • Davor R.
    Developer · Boca Raton, FL · Member since 2018 · 15 posts · 7 votes
    8y

    @chris youssi Chris, I live in Fl and have developed hundreds of houses in OH over the years. I've tried to structure something similar as the LOC structure you've mentioned. Problem I've run into with the smaller local banks are that they I do not meet their requirement of living in their marketplace - I've spoken with 3 or 4 and all seem to be only interested in business with local Principals... thoughts/suggestions?

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free