Choose the Right Bank for Your Multifamily Deals

3 years ago
43

As I mentioned in my previous videos, the bank is your partner in the multifamily deals you make. However, finding the right bank is just as important as finding the right partner. While you may be crazy about multifamily cashflow, not all banks specialize in doing multifamily.

Here's an example: I am working on a $5 million dollar multifamily deal in Cleveland. The sellers were looking to get out of the deal because they wanted to move out of state. Taking a look at the loan, it had a good rate in the mid-fours but had a 20-year amortization. I thought this was odd for a loan of this size. Since a loan was assumable, I figured I would give the bank a call then see if there's an opportunity to take a loan over with a longer amortization. It would not only help the seller save a bunch of money in prepayment fees but also get the financing done a little quicker. After talking to the bank and asking them about doing a 30-year amortization, the banker admitted that his underwriters really don't like multifamily and the very best they would do is 25. This bank really loves Industrial and Warehouse type properties.

You need to make sure that you speak with multiple banks to get the best rates and terms you can, but also make sure that the bank is a fan of multifamily. Again, your bank is your partner. They have to believe in the deal as much as you do.

By the way, the reason why I wanted a longer amortization is because I'm aiming for cash flow. While of course, a shorter amortization would pay the loan off quicker, my partners and I are looking to leverage the property cash flow as much as possible. The longer the amortization is, the better the cash flow will be overall.
HELP US OUT
Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you! Thank you in advance! ♡

HAVE A QUESTION?
I am working on a new show where I answer your questions. To submit a question, go to www.bulletproofcashflow.com and you will see a widget where you can speak your question. If I use your question on the air, we'll send you our newly designed t-shirts.

✧✧✧✧✧✧

DOWNLOAD FREE EBOOKS
✧ Talk to Brokers: http://bit.ly/FindBroker
✧ Raise Capital: http://bit.ly/RseFunds

LISTEN TO THE PODCAST
✧ BCF on iTunes: https://apple.co/2B4AvXp
✧ BCF on Stitcher: http://bit.ly/StitcherBCF

SOCIAL MEDIA!
DM me! I want to hear from you!
✧ IG: http://www.instagram.com/bulletproofc​...
✧ FB: https://www.facebook.com/bulletproofc​...
✧ LI: https://www.linkedin.com/company/bull​...
✧ WE: https://www.bulletproofcashflow.com

JOIN THE GROUP
✧ FB: https://www.facebook.com/groups/bulle​...

♡ Be Bulletproof!

Loading comments...