Is this accurate (from a conversation with a Cleveland broker)?
This week, I spoke with a multifamily broker in Cleveland, whom I found on Loopnet. I'm new to this market (based in Los Angeles, where I mainly invest today), and trying to build a team of capable folks in CLE.
He indicated that a lot of multifamily deals, maybe most, in the range of maybe $350,000 to as much as $900,000 in CLE are cash purchases, and investors take out a mortgage with a bank later. Is this accurate? It's not a deal breaker by any means, and I"m familiar with this in many markets, but I wanted to make sure this isn't complete BS.
He also said that a lot of more local lenders don't want to work with out of state investors on multifamily loans, perhaps because of a lack of recourse on the loan? He suggested working with larger national lenders like US Bank, Wells Fargo etc, and offered to connect me with loan officers in Ohio for those banks. Not opposed at all to working with larger lenders (current WF customer actually), but again, I want to know that this is accurate, because I have found that smaller and local lenders sometimes offer better deals.
Any feedback appreciated.