All Forum Posts by: Diva Rescia

@Diva Rescia
A lot of Commercial lenders I know in Columbus OH will not lend to out-of-state clients. We have found some that will if they can see you already own a small multi-family in that market and that you have operational experience owning Multi-family. As for the comment on online lenders, I would stay away from using out-of-state lenders or online lenders to buy anything let alone 5+ units. The reasoning being they don't know that market and they always have problems. For example 35 days into a 55-day contract, an out-of-state lender still couldn't order an appraisal. We switched lenders and a commercial guy I work with a lot here in Columbus had the appraisal ordered in 5 days and back to us in a week. As well as a lot of out-of-state lenders flagging stuff like a small amount of water in a basement. Most local lenders will look at it and it won't be a problem. 

Hi @Diva Rescia

They have DSCR loans for those who don't have the necessary DTI ratio needed to qualify for conventional lending. They take into account the projected rent that will be collected to cover the debt, and if it's greater than a ratio of 1.2 and sometime lower, they will approve the loan. Talk with an investor friendly lender that offers this program and they can help you out.

@Diva Rescia - a good broker can find options for you.  Besides the usual things the lender will want to see, they will also want to see that you are an experienced investor and that you have a property management company set up for the property.

Have you tried a commercial mortgage broker ? I got pre-approval quickly.

There are 2 ways to go.

Bridge Financing
Usually used for value add properties with under market rent. This gives you the opportunity to acquire the property and get it into a shape where you can get permanent financing. You can also get your rehab financed through this.

Permanent Financing
There are plenty of commercial lenders that will finance the deal out of state but often times they want at least $500k in loan amount. Rate can be comparable to FNMA permanent financing. Main thing is the property occupancy and debt service coverage ratio often time needing 1.2-1.25. The most important thing in purchasing a multi family deal is the property itself along with your personal financials. Personal income not so much. I'm in Cali but we've financed FL, TX, OH no problem.

@Diva Rescia

Never encountered this.  I help first time investors purchase larger multifamily properties out of their home state all the time... no lender has ever questioned it to me. 

Why do you not want to talk to a mortgage broker?  Any commercial mortgage broker will have easy access to help you find what you are looking for and often at better costs and with more ease.

Sounds to me like you are asking the wrong lenders or looking in the wrong places.  Brokers are a great resource to help folks out who are having trouble such as what you are now.

Cheers!