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Changed my mind about using a national lender for a small strip mall deal
I was set on a big bank for a $1.2M refi on a property in Tacoma, thinking they'd be solid. My broker pushed me toward a regional credit union instead, arguing they'd be more flexible on the DSCR. The credit union closed in 45 days and gave me a better rate by 25 basis points. Anyone else find local lenders are better for deals under $5M?
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richardh445mo ago
I mean, that's a lucky one-off in my experience. Big banks have way deeper pockets when things get weird, like if you need to restructure later. My last deal with a local lender fell apart because their loan committee got spooked by a market report. National lenders just have more rules, sure, but that also means they're predictable. You might wait an extra two weeks, but you know the money is actually there. For a refi, maybe it's fine, but I wouldn't bet on a credit union for anything more complex.
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shah.zara5mo ago
Yeah, the "money is actually there" point from @richardh44 is a big one. I used to chase the lowest rate without thinking about that. Seeing a friend's small bank deal fall through last minute totally changed my mind on that.
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derek_coleman4mo ago
Read an article from a commercial real estate forum that said local lenders actually hold onto their small commercial loans instead of selling them off, so they're more careful about underwriting but way more consistent once you're in. Sounds like that worked out in your case...
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