Tapping the collective network here to find a great commercial lender. I purchased a serious value add 12 unit apartment building in Indianapolis in April of 19' and spent the last 9 months completely turning it around:
- Over $150k in renovations: new roof, completely updated common area, most units renovated and turned, new furnaces, plumbing and electricity updates.
- Went from 9/12 units occupied, mom and pop managed and all well under market rents and most not paying on time. Now we are 100% occupied at market rents with higher quality tenants.
If you're a great lender or know of one, please comment or message me directly. Looking to get started on this refi ASAP.
I take it the loan for this property will be under $1mm? If so, I would suggest making a list of local banks and credit unions local to the property (within 1 hour drive) and contacting them all. Ask if they finance those properties #1 and then their terms and fees. Normally, local banks will run their lending at about 1.5%-2.5% above the cost of the funds to them. They will tell you the spread they charge and the source of the data that you can easily find online. This gives you apples to apples comparisons when looking for lenders. For example; if the property was in New England; they will customarily run off of: http://www.fhlbboston.com rates. You can easily go to the website and figure out the cost. Also, you will save on the brokerage fee for all of the time you are spending.
Thanks @Charles Carillo - great advice!