Investor · Dublin, CA · Member since 2016 · 344 posts · 228 votes
Hello,
I am out of state investor investing in Atlanta metro. I found a duplex in Gainesville for which my offer is accepted and due diligence have been completed. I am buying the property under an LLC so I have to get a commercial loan. Can someone recommend a local bank or lender who would lend to an out of state investor for loan amount of around $135K? I am working with brokers but the rates and costs are through the roof.
Attorney · Gainesville, GA · Member since 2015 · 106 posts · 87 votes
8y
Rather than look for a lender local to the property, speak with lenders close to you. For commercial loans, especially in the price range you're looking at, local banks are looking to lend to people they "know" or can vet locally, which may be tough for an out-of state investor.
Realtor and Investor · Scottsdale, AZ · Member since 2017 · 1k+ posts · 1k+ votes
8y
Why do you have to make the initial purchase through your LLC? Do you have the option of purchasing the property yourself, and then Quit deeding it to the LLC?
If so, I would explore that route in order to take advantage of the better rate and terms the conventional loan can provide. Since it's a 1-4 unit, it would be a shame to not have that opportunity for savings.
Attorney · Gainesville, GA · Member since 2015 · 106 posts · 87 votes
8y
Rather than look for a lender local to the property, speak with lenders close to you. For commercial loans, especially in the price range you're looking at, local banks are looking to lend to people they "know" or can vet locally, which may be tough for an out-of state investor.
Investor · Decatur, GA · Member since 2015 · 313 posts · 207 votes
8y
Most of the portfolio lenders in Atlanta will not lend to out of state borrowers. A duplex qualifies for agency debt as long as you are under the 10 loan cap so I would pursue that angle. On the deed transfer just use a limited warranty deed and the title insurance stays in force.