lending for multifamily

8 Replies

Hello

I am interested in purchasing multifamily properties. I will be putting down 25 percent, expect the loan to be in the size of 500 K to 750 K. In addition I am planning on paying off the properties in 10 years or so. Any suggestions for lenders? With residential properties, Suntrust offered competitive rates. I am sure I will reach out to them and some of the other banks in the area for commercial options. 

Thank you

Hey @Omer Zulfiqar With loans of that size, I'd go and chat with a few community banks and a few credit unions. They should be able to offer you some stellar rates and terms.

Jake that makes me feel pretty good. I have discussed real estate lending with banks in the past but have not crossed paths with credit unions.  I should be able to create more leverage with lenders if I suggest that I can come back to them for future deals as well. Thank you for your reply.

@Omer Zulfiqar in addition to local/regional banks and credit unions. Which you should definitely start talking to a few in your area.. usbank does commercial lending in that dollar amount and has pretty good terms.

tyler thank you for the reply. I see offers in the 5 year fixed/25 year amortization range. Since I am looking to pay off the property in 10 years, have you come across more favorable fixed duration terms from banks. I know fannie/freddie will offer longer duration of fixed terms but the loan size is not that large. 

@Omer Zulfiqar

Are you looking at residential 1-4 unit properties or 5 units and greater?

You will get the best rates with conventional financing if 1-4 units.

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@Omer Zulfiqar

There are lots of opportunities for those type loans from local banks and credit unions, lenders like @Jerry Padilla or portfolio lenders/brokers that don't require income verification and minimal documentation.  It all depends on what you qualify for.  The bank/lender route is going to be the least expensive and require the most documentation.  The portfolio lender/broker is going to be able to offer a 30 year fixed, again with minimal documentation.

Best of luck

Stephanie

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