All Forum Posts by: Zachary DeNeen

@Will Fraser hopefully there will plenty of repetition in the near future. 

@George Despotopoulos Wow! Thank you very much for the informative response. Those were two options I hadn't pursued. The planned MFR is 21 units so the non bank bridge lender would be a good source for financing. An interest only loan potentially at 8-10% for 24-36 is actually a really good option. I really appreciate the insight.

@Will Fraser I agree. Since my original post, I spoke with a few more local lenders and they stated that they only dealt with in state loans for commercial properties. I am going to follow through with your advice to start working with a bank in the region of the actual investment property. Hopefully, I will have an easier time getting financing since they will know the area. 

@Joshua Gorsky The property is in Northern  Florida. This would be my first commercial property, so I don’t have an existing relationship with a lender. I’m sure that that also factors into their equation of providing or not providing a loan.

Thank you to both of you for your input and responses. The commercial loan process is all new to me, so I appreciate it. 

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 

Now that I realized I can tag someone, thanks so much @Danny Randazzo and @Evan Polaski for the information. I am actually really happy to hear that going to a lender first is an option as I have been running into difficulty with finding the exact property I want to pursue. Since it will be an out of state property, I felt like going to look at these places in person prior to knowing even if I could be approved for a loan to purchase would lead to a lot of time and money wasted. Even though I am able to meet the down payment and credit requirements that @Bjorn Ahlblad had mentioned, going to a lender first and seeing what options they have would be a huge help to see how much I would be approved for since it will most like be a loan of >1mm. 

Thanks so much for the quick and informative response. I’ll start narrowing down my search and continue to look into additional local credit unions here until I can bring the chosen property and the additional information you mentioned to the meeting. 

I have successfully completed a few single family home flips and have always had conventional loans. I am now planning to invest in a small to medium sized apartment complex out of state. I have found a few local credit unions and small bank options locally who do offer commercial loans, but I am unsure how to proceed. A lot of my research has said to first get in touch with the banks/lenders in order to secure finances before proceeding with a commercial property. Do I have to bring a specific property and the bank/lender when I meet with them in order to get approved for financing for that property? Or is it initially just providing my finances and other necessary documentation for a commercial loan pre-approval type of letter that will show the limit of what I can afford property wise in order to then move on to finding the property I want to bid on? Thanks in advance for any help and guidance.