Commercial Loan and Financing Options

[Zachary DeNeen]

Hi Everyone,

   I am located in Monmouth County and have been looking to obtain a commercial loan for a small to medium sized multi-family/apartment complex out of state and have been running into a little bit of a road block. I have called some of the local credit unions and also some of the big banks in order to obtain financing. I have great credit, the necessary down payment, currently have a few residential rental properties up and running and also have a few flips under my belt. Yet, the few credit unions I spoke to will only lend if the property is located in certain parts of NJ. The only one who would allow for out of state financing was Wells Fargo, but some of their terms and loan options weren't too favorable.  

   Does anyone have any recommendations for credit unions, banks or other financing options in NJ who lend for properties outside of the state? Or is my best bet to find a lender in the state where the investment property is located. Thanks in advance and I appreciate any recommendations or advice with this matter.

-Zach 

[Joshua Gorsky]

@Zachary DeNeen

Hi Zach, I’ve seen both of your hypothetical solutions be true. On occasion, a NJ lender will follow their existing relationships out of market. Other times they won’t, and a local lender is best. Where is your out of state property?