I called the bank to get a mortgage, it was an odd experience
Member since 2018 · 22 posts · 22 votes
I called the bank to get a mortgage, it was an odd experience
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesQuote from @Bob E.:
Quote from @J. Pablo Fernández:
Hello,
I have a company, an LLC, that has owned a property for 5 years, which has been cashflowing for 5 years, and appreciated in value a lot during that time. I was using Bank of America as my bank, so they can see the money coming into the account and piling up. I call them to get a mortgage on that property to use the money to buy another. Their answer was "We don't offer loans to companies unless their revenue is 100k/year or more". I don't think we are talking about the same things at all. That sounds like unsecured loans. It's like they didn't know mortgages exist.
They told me to go talk with personal banking (not an option to me because I'm not a US person, I don't have a SSN or credit history).
Is this correct, banks just don't offer mortgages to commercial entities to the point where their workers don't even have them in their radar? I feel like this can't be the case, but it's not my first time attempting this, and I feel like I'm doing something wrong.
I have been rejected by Wells Fargo multiple times. We have a decent portfolio and I can't even get a LOC from them. Last summer I got rejected by US Bank. You need to work with smaller banks as @David Garner suggests.
large national banks are a waste of time. small investors they have zero interest in .. you have 5 million in their bank that might be different.. One needs to find small local Commerical only banks.. usually 1 b or under in size . where you can actually meet the head credit officer and the bank president and such.. these are the banks you want to deal with for these situations.. Not saying foriegner can do this but for us USA citizens with these small portfolios this is where you want to go the big banks just are not interested in us small guys/ gals.
7 Replies
- Investor · Ellwood City, PA · Member since 2019 · 93 posts · 124 votes4yHey Pablo
Quote from @J. Pablo Fernández:
Hello,
I have a company, an LLC, that has owned a property for 5 years, which has been cashflowing for 5 years, and appreciated in value a lot during that time. I was using Bank of America as my bank, so they can see the money coming into the account and piling up. I call them to get a mortgage on that property to use the money to buy another. Their answer was "We don't offer loans to companies unless their revenue is 100k/year or more". I don't think we are talking about the same things at all. That sounds like unsecured loans. It's like they didn't know mortgages exist.
They told me to go talk with personal banking (not an option to me because I'm not a US person, I don't have a SSN or credit history).
Is this correct, banks just don't offer mortgages to commercial entities to the point where their workers don't even have them in their radar? I feel like this can't be the case, but it's not my first time attempting this, and I feel like I'm doing something wrong.
Non-citizen investor here! I have found there are lots of commercial lenders that will originate loans to non-citizens. I have never found an actual institutional bank that will do so.
You are best to search around for commercial mortgage brokers that have access to these types of private lenders and start asking about their programs.
Rates vary... amd right now may well be different from the last time I looked at it due to the wider interest rate situation, but you will be looking at 5.75% to 7.5% depending on the LTV and DSCR in my more recent experience.
Hope that helps, and good luck.
DG Quote from @J. Pablo Fernández:
Hello,
I have a company, an LLC, that has owned a property for 5 years, which has been cashflowing for 5 years, and appreciated in value a lot during that time. I was using Bank of America as my bank, so they can see the money coming into the account and piling up. I call them to get a mortgage on that property to use the money to buy another. Their answer was "We don't offer loans to companies unless their revenue is 100k/year or more". I don't think we are talking about the same things at all. That sounds like unsecured loans. It's like they didn't know mortgages exist.
They told me to go talk with personal banking (not an option to me because I'm not a US person, I don't have a SSN or credit history).
Is this correct, banks just don't offer mortgages to commercial entities to the point where their workers don't even have them in their radar? I feel like this can't be the case, but it's not my first time attempting this, and I feel like I'm doing something wrong.
I have been rejected by Wells Fargo multiple times. We have a decent portfolio and I can't even get a LOC from them. Last summer I got rejected by US Bank. You need to work with smaller banks as @David Garner suggests.
- 4yRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
Quote from @J. Pablo Fernández:
Hello,
I have a company, an LLC, that has owned a property for 5 years, which has been cashflowing for 5 years, and appreciated in value a lot during that time. I was using Bank of America as my bank, so they can see the money coming into the account and piling up. I call them to get a mortgage on that property to use the money to buy another. Their answer was "We don't offer loans to companies unless their revenue is 100k/year or more". I don't think we are talking about the same things at all. That sounds like unsecured loans. It's like they didn't know mortgages exist.
They told me to go talk with personal banking (not an option to me because I'm not a US person, I don't have a SSN or credit history).
Is this correct, banks just don't offer mortgages to commercial entities to the point where their workers don't even have them in their radar? I feel like this can't be the case, but it's not my first time attempting this, and I feel like I'm doing something wrong.
DSCR loans are likely your best bet (offered by private lenders, not banks). These are designed for LLC borrowers and are primarily concerned with the cash flow of the property to underwrite (with no high requirements like 100k revenue). A lot of DSCR lenders will lend to foreign nationals as well, but terms will be much better if you are a permanent or non-permanent alien terms will better
Harpoon Capital514 Reviews - Rental Property Investor · Argentina · Member since 2020 · 15 posts · 9 votes4y
Hola @J. Pablo Fernández!
I'm a foreign national myself and am currently closing on a refi for a property I purchased a few months ago. Big national banks won't give a loan to a foreign national, but if you talk to a smaller local bank you'll have more luck. DSCR loans as @David Garner suggests are the most fitted and as long as the property qualifies commercial lenders don't care about the fact that you are foreign national. The only difference is that most will only finance 65% LTV and not 75% or more if you were a US person.
As mentioned, I'm currently closing on a refi and have contacted several lenders that offered me terms, DM me and I'll gladly send you all their contact info.
- 4yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Bob E.:
Quote from @J. Pablo Fernández:
Hello,
I have a company, an LLC, that has owned a property for 5 years, which has been cashflowing for 5 years, and appreciated in value a lot during that time. I was using Bank of America as my bank, so they can see the money coming into the account and piling up. I call them to get a mortgage on that property to use the money to buy another. Their answer was "We don't offer loans to companies unless their revenue is 100k/year or more". I don't think we are talking about the same things at all. That sounds like unsecured loans. It's like they didn't know mortgages exist.
They told me to go talk with personal banking (not an option to me because I'm not a US person, I don't have a SSN or credit history).
Is this correct, banks just don't offer mortgages to commercial entities to the point where their workers don't even have them in their radar? I feel like this can't be the case, but it's not my first time attempting this, and I feel like I'm doing something wrong.
I have been rejected by Wells Fargo multiple times. We have a decent portfolio and I can't even get a LOC from them. Last summer I got rejected by US Bank. You need to work with smaller banks as @David Garner suggests.
large national banks are a waste of time. small investors they have zero interest in .. you have 5 million in their bank that might be different.. One needs to find small local Commerical only banks.. usually 1 b or under in size . where you can actually meet the head credit officer and the bank president and such.. these are the banks you want to deal with for these situations.. Not saying foriegner can do this but for us USA citizens with these small portfolios this is where you want to go the big banks just are not interested in us small guys/ gals. - Lender · Los Angeles, CA · Member since 2022 · 22 posts · 14 votes4y
You really have two things going on here, and they should be tackled one at a time:
1. LLC entity, or any other business entity for that matter -- a DSCR loan is your option. Conventional banks (large or small) don't want to be lending to an entity, only an individual. However, most DSCR lenders will also want the guarantor of said entity to be U.S. Citizen or have an ITIN. Which brings us to...
2. If you have no SSN, ITIN, or trade lines (credit history), your options are even further limited to an even smaller group of DSCR lenders who will lend to you. You either have to source that lender yourself (they definitely exist), or utilize a broker to source them for you.
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