Commercial Lenders For 18 Unit Deal In The City

[Ben Mizes]

My business partner @Luke Babich and I are under contract for an 18 unit property in the city. We're currently interviewing commercial lenders. Does anyone have a good recommendation?

Thanks!

[Matt Bowler]

@Ben Mizes I spoke with commercial lending at Bank of Washington (as in Washington, MO) back on January 8 to get a feel for their lending on large multi-family.  Here are my notes:

• They like a debt service ratio of 1.2:1 (maybe up to 1.5:1)
• 20 year amort
• As low as 15% down (prefer cash, but might be able to work with equity)
• Can generally underwrite in a few days (assuming a local-ish investment. Basically just needs time to take a look. I assume they would fly at your cost to look at it if it was out of state...my assumption)
• Will lend up to 80% of improvement costs as well

My overall feeling was that they could get creative too, so that 20 year amort might move to 25 if you need it to.

If this sounds like it might work for you, send me a private message and I will send the info for my contact at Bank of Washington.