Which lender in Maine will lend to my LLC?

Question

Good day,

I'm trying to find a Bank/lender to start lending to my LLC.  I have had my LLC for 3 years now and have showed profit for the last 2 years.  All 4 of my rental properties have been transferred into my LLC name, but all the loans have been through me and i'm maxed out.

How can I get a loan through my LLC now?  Which Banks near Freeport Maine specifically will Loan to my LLC?

Thank you very much!

Brendan

Rolanda Eldridge · Answer

Work on building relationships with small banks with a commercial product..

Scot Jalbert · Answer

Yes most will want 25% down, but with commercial loans you definitely can do a little negotiating.  If the bank says they require 25% down ask them if they would consider 15% or 20% down.  If they say no, ask them if they would be willing to go to 15% or 20% if you agreed to pay a little higher interest rate, but of course don't say that until you hear what their rate is in the first place.  I bought both my buildings with 20% down and pay less than 6% interest.  Commercial loans do have higher rates and you can't get a 30year fixed.  You usually have to go with some kind of ARM.  You can also negotiate here.  Let's say they have a 5 year ARM amortized over 20 years.  You might be able to negotiate a 7 or 10 year ARM amortized over 25 or 30 years.  And yes if the numbers on the property are really good that will help your cause.  On my second building, the bank liked the numbers so much they didn't do a formal appraisal, just a BPO, which save me almost a $1000.

Brendan Duggan · Answer

Thanks Scot,

Of course I'm assuming with the commercial loan that the lender will require 25% down.  I'm still a modest investor and the more units the higher the purchase price. Is it possible to get around the large down payment if the numbers on a particular property were attractive enough?

Brendan Duggan · Answer

Thank you Rolanda, I will reach out to small banks and credit unions today!

Scot Jalbert · Answer

You need a commercial loan for 5 units and up.  The bank looks at the numbers of the building, just like it was a business.  Both my properties were bought with commercial loans, and though they looked at my credit worthiness, they were most concerned about cash flow.  I used 2 different Maine banks to purchase each building.

Rolanda Eldridge · Answer

@Brendan Duggan It's worth a try.  Credit Unions also provide business funding.  Networking can also open up opportunities..

Brendan Duggan · Answer

What do you suggest? I've maxed out properties in my own name and so I wonder if a small bank will entertain my LLC. Thanks.

Brendan Duggan · Answer

All of the above.  My concern with 5 units and up is dependant upon the lender and i'm not sure how "attractive" my finances need to look to get a larger loan for a larger property.

Scot Jalbert · Answer

Are you looking to buy a 1 to 4 unit property or 5 units and up?

Which lender in Maine will lend to my LLC?

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