Lenders in Kansas City

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Lenders in Kansas City

Edo Y.
Real Estate Investor · Weehawken, NJ · Member since 2017 · 23 posts · 29 votes

Hi.

We have 3 duplexes in the Kansas City area that we bought recently in cash. We would like to refinance it and need a lender who would do commercial loan to an LLC for investors who live out of town. I'd appreciate any recommendations.

I'd like to take this opportunity and warn investors from doing business with "Great American Bank". It is a local bank based in KS/MO. We applied for a loan with them after the banker gave us a lot of confidence they would lend us money under the above terms. They ran a credit report (which is perfect for all partners) and had us pay for the appraisal (that came back above purchase price). Eventually their bank committee rejected our loan because we're from out of town (which they knew in the first place). Even if you do live in the area, I'd stay away from this bank because of their very unprofessional behavior.

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Lee RipmaPro Member
Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
7y

@Edo Y.

I also am out of state and hold properties in LLCs in KC. It is hard to find local commercial banks that will work with out of town investors. Great American did one loan for me but then they didn't seem willing to do any more. I'm now working on a long-term relationship with UBT and plan to do a cash-out refi with them after a rehab of a 4plex I have is done (currently in it all cash). Cornerstone Bank is also good and was formerly unwilling to work with out of state investors but I think is willing to now. Feel free to PM me for some local bankers that seem to work with out of state investors and those that don't. Cornerstone and UBT are top of my list right now. I've had trouble with Country Club, Bank 21, and Great American. 

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  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    7y

    @Edo Y. are you put of town or out of the USA?

    What is the combined value of the properties?

    There are few options based on your answers...

    1. You can go conventional loans on the triplex one by one and lock it in for 30 years fix rate. -- if you are based in the US. 

    2. Local Bank.

    3. If the loan is large enough you can go with Fannie Mae Multifamily Scattered Sites loan. 

    3Reply
  • Edo Y.
    OP
    Real Estate Investor · Weehawken, NJ · Member since 2017 · 23 posts · 29 votes
    7y

    @Hadar Orkibi - Thanks for your response. 

    We are 3 partners. All US residents but based out of the state of MO. We are holding this with an LLC, which usually disqualifies us from conventional loan, so option 1 is out.

    Option 2 is what we tried, I'd be happy to get information of reliable local bank.

    I didn't think of option 3. I'll research it. If you have any links to share with additional information it would be great.

    1Reply
  • Logan Freeman
    Specialist · Kansas City, MO · Member since 2018 · 331 posts · 148 votes
    7y

    @Edo Y. I am happy to provide you with a few references that I think will be able to help you out. Please DM me and we will get information shared. 

    0Reply
  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    7y

    @Edo Y. I was recently refereed to couple of lenders there. 

    feel free to PM me if you wish to connect.

    There few options, perhaps talk to an agency lender.

    https://mf.freddiemac.com/docs/update_05042018.pdf

    https://www.crefcoa.com/fannie-mae-scattered%20sit...

    1Reply
  • Lee RipmaPro Member
    Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
    7y

    @Edo Y.

    I also am out of state and hold properties in LLCs in KC. It is hard to find local commercial banks that will work with out of town investors. Great American did one loan for me but then they didn't seem willing to do any more. I'm now working on a long-term relationship with UBT and plan to do a cash-out refi with them after a rehab of a 4plex I have is done (currently in it all cash). Cornerstone Bank is also good and was formerly unwilling to work with out of state investors but I think is willing to now. Feel free to PM me for some local bankers that seem to work with out of state investors and those that don't. Cornerstone and UBT are top of my list right now. I've had trouble with Country Club, Bank 21, and Great American. 

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  • Kenny Hedrington
    Member since 2018 · 4 posts · 3 votes
    7y

    @Lee Ripma @Edo Y. May I suggest Bank Midwest in Kansas City. I know they don't shy away from out of state investors. I can get you more information if you guys still need it.

    3Reply
  • Jeffrey Trudeau
    Rental Property Investor · Weymouth, MA · Member since 2019 · 6 posts · 0 votes
    7y

    @Edo Y. Would you mind sharing which lender you went with?

    I currently have a 8-unit under contract in KC. This is my first investment property. My partners & I live outside of MO. Right now, the rate we got from Cornerstone seems to be the best. Would definetly appreciate other recommendations! 

    @Kenny Hedrington Do you have a specific contact at Bank Midwest that you suggest talking with?

    0Reply
  • Kenny Hedrington
    Member since 2018 · 4 posts · 3 votes
    7y

    @Jeffrey Trudeau Just sent you a message.

    0Reply
  • Richard Updegrove
    Rental Property Investor · Arvada, CO · Member since 2019 · 18 posts · 11 votes
    7y

    I'm also looking to buy in the Kansas City market. I lived in KC for 7 years and moved to Denver about 5 years ago. I'm looking at SFH and possibly duplexes. I'm in the process of looking for a lender and putting together a team in KC. It sounds like Bank Midwest, Cornerstone and UBT could be options? I also personally bank with US Bank so I don't know if I should start there. Any suggestions would be much appreciated!

    3Reply
  • Jake Riordan
    Real Estate Broker · Overland Park, KS · Member since 2014 · 94 posts · 51 votes
    7y

    Bank of the West has the best loan programs that I know of for 5+ units & they work with out of town buyers.  15 year fixed & 10/30 with reasonable rates.  Let me know if you want LOs contact info.

    6Reply
  • Christopher J Lemmon
    Investor · Little Rock, IA · Member since 2015 · 136 posts · 72 votes
    7y

    @Jake Riordan could you message me your LO contact at Bank of the West? 

    1Reply
  • Jake Riordan
    Real Estate Broker · Overland Park, KS · Member since 2014 · 94 posts · 51 votes
    7y

    Will do!

    0Reply
  • Laura Williams
    Kansas City MO · Member since 2014 · 357 posts · 349 votes
    7y

    @Edo Y. Thanks for the heads up about Great American Bank. I've had good luck with Bank 21 and found them to be very professional. I would recommend them for commercial loans. They do loan to investors who are not local.

    2Reply
  • Caleb Webster
    Real Estate Agent · Portland, OR · Member since 2017 · 117 posts · 59 votes
    7y

    @Jake Riordan Can you send me your Bank of the West contact? I'm an out of state investor too and got a refi coming up on a 12 unit. Thanks!

    1Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    7y
    Originally posted by @Edo Y.:

    Hi.

    We have 3 duplexes in the Kansas City area that we bought recently in cash. We would like to refinance it and need a lender who would do commercial loan to an LLC for investors who live out of town. I'd appreciate any recommendations.

    I'd like to take this opportunity and warn investors from doing business with "Great American Bank". It is a local bank based in KS/MO. We applied for a loan with them after the banker gave us a lot of confidence they would lend us money under the above terms. They ran a credit report (which is perfect for all partners) and had us pay for the appraisal (that came back above purchase price). Eventually their bank committee rejected our loan because we're from out of town (which they knew in the first place). Even if you do live in the area, I'd stay away from this bank because of their very unprofessional behavior.

     There is NO reason for a bank to reject your loan because you are out of town AFTER they did an appraisal. As you said, they knew you were from out of town and would have known that the minute the did your loan application. That is just plain incompetence. This is why I only work with lenders that deal a lot with investors and know the investment loan guidelines.

    0Reply
  • Edo Y.
    OP
    Real Estate Investor · Weehawken, NJ · Member since 2017 · 23 posts · 29 votes
    7y

    Hello Everyone.

    I wanted to update this group that our story finally had a happy end. After a year of struggle, last week we finally received a loan from Bank of the West! They gave us amazing terms and I highly recommend reaching out to them to see if you qualify for a loan (they work in several other areas).

    I'd also like to say a good word for Bank 21, NBKC and Land Brothers Mortgage Brokerage. All were very professional and appeared very reliable. We ended up taking the best offer but will definitely remember them for future loans.

    Finally, I thought it would be useful if I share my (partial) spreadsheet with all the lenders I looked at. Feel free to reach out to me and I can share with you the full spreadsheet that includes all the contacts, the offers we got and my comments - the good and the bad.

    Cheers,

    Edo.

    5Reply
  • Cliff T.
    Rental Property Investor · San Francisco, CA · Member since 2016 · 215 posts · 42 votes
    7y

    @Edo Y. - do you mind sending over the info for your contact at Bank of the West? I'm looking to get commercial financing on a Quadplex in KCMO.

    0Reply
  • Pete M.
    Financial Advisor · Issaquah, WA · Member since 2017 · 243 posts · 141 votes
    7y

    Resurrecting this thread in lieu of just making a new one--I'm looking to get started BRRRRing in KCMO shortly. I see a lot of banks mentioned, but no contact info. Anyone care to share? Will be doing SFRs & small multifamily to start, but doing everything with an LLC and prefer the flexibility of portfolio loans.

    Thanks in advance.

    0Reply
  • Steven MayBusiness Member
    Real Estate Agent · Kansas City, MO · Member since 2018 · 262 posts · 250 votes
    7y

    Love the feedback on this thread! 

    I currently have one SFH that I house hack. Been in the property 7 months. Looking to owner occupy a duplex. Wondering if anybody knows lenders willing to give a second personal residence loan on a duplex at a lower down payment!

    Also I have a cash flowing duplex offer accepted. Needing help funding the 25% down if anyone is looking to partner or earn interest on a private/hard money loan! PM me for details!

    Keep hustling KC BP!

    0Reply
  • Cliff T.
    Rental Property Investor · San Francisco, CA · Member since 2016 · 215 posts · 42 votes
    6y

    Anyone have contacts at Bank 21 or NBKC? @Edo Y.

    0Reply
  • Matt Moylan
    Insurance Broker · Kansas City, MO · Member since 2017 · 370 posts · 127 votes
    6y

    @Cliff T. I have a couple contacts.  shoot me a message I'm happy to introduce you

    0Reply
  • Jim GenisPro Member
    Investor · Olathe, KS · Member since 2014 · 88 posts · 58 votes
    6y
    Originally posted by @Jake Riordan:

    Bank of the West has the best loan programs that I know of for 5+ units & they work with out of town buyers.  15 year fixed & 10/30 with reasonable rates.  Let me know if you want LOs contact info.

    Agree with @Jake, especially if you're in California.

    1Reply
  • Jim GenisPro Member
    Investor · Olathe, KS · Member since 2014 · 88 posts · 58 votes
    6y
    Originally posted by @Edo Y.:

    Hello Everyone.

    I wanted to update this group that our story finally had a happy end. After a year of struggle, last week we finally received a loan from Bank of the West! They gave us amazing terms and I highly recommend reaching out to them to see if you qualify for a loan (they work in several other areas).

    I'd also like to say a good word for Bank 21, NBKC and Land Brothers Mortgage Brokerage. All were very professional and appeared very reliable. We ended up taking the best offer but will definitely remember them for future loans.

    Finally, I thought it would be useful if I share my (partial) spreadsheet with all the lenders I looked at. Feel free to reach out to me and I can share with you the full spreadsheet that includes all the contacts, the offers we got and my comments - the good and the bad.

    Cheers,

    Edo.

    @Edo, this is great. You can also add Country Club Bank to the "no" list since they don't lend to out-of-state investors, nor on out-of-state properties even if you are an in-state investor (KS and MO). I've worked with them on in-town deals but they're very conservative.

    0Reply
  • Anthony Chao
    Investor · Bay Area, CA · Member since 2019 · 40 posts · 28 votes
    6y
    Originally posted by @Jake Riordan:

    Bank of the West has the best loan programs that I know of for 5+ units & they work with out of town buyers.  15 year fixed & 10/30 with reasonable rates.  Let me know if you want LOs contact info.

    @Jake Riordan could you also message me your loan officer contact at Bank of the West?  Thank you.

    0Reply
  • Lee RipmaPro Member
    Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
    6y

    @Anthony Chao

    I get a lot of questions about lenders in KC. As of May 2020 lenders are tightening up standards, especially if you are out of state. A lot of lenders also will not work with out of state investors. Right now Bank of the West will lend to out of state with 30% down. They have 25 year same with 5 or 10 years fixed. CACU will also lend to our of state folks they have 20 year ams with 5 years fixed. These are the two I know that are currently lending. There may be others but those are the two that I know. You can also get residential loans with 25% down on MF. Rates are low but lending is more strict. 

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