Multifamily Residential Business Lending Takes Off

Rachel, who has been a credit union member since high school, and her husband have been investing in single family and duplex rental properties for the past six years. When they found a 5-unit commercial property they were interested in acquiring to expand their small but growing real estate portfolio, they were initially unsure how to finance their commercial purchase.

Although the couple had gone through UW Credit Union for previous properties, the credit union did not offer commercial lending services at the start of their purchase negotiations. After being turned down or provided less-than-favorable options by multiple banks, the couple reached back out to UW Credit Union, which was just launching its Multifamily Residential Business Lending pilot.

"UW Credit Union really shined in this process," Rachel shared. "They looked at our history and finances, and said 'We know you, and we're going to invest in you.' That was so different from the responses we got from other lenders."

The UW Credit Union team provided educational support to the couple, helping them navigate the transition from residential to commercial real estate investing. Additionally, the credit union worked closely with the owners on financial modeling to ensure the investment remained profitable while keeping rents affordable for tenants.

"Partnering with Erik, Kevin, and the rest of the UW Credit Union team felt like having a true business partner, not just another financial institution. Their willingness to work with us, even as we expanded into new territory, was pivotal to the success of this purchase.

Part of what motivated us to start renting property was our own experiences with landlords – good and bad – and knowing how challenging it can be to find affordable housing. UW Credit Union never made us feel like we had to charge more than people could afford. The idea of aggressively setting rents was never part of the conversation.

Instead, we worked together through a lot of economic models. The credit union helped us figure out how to pay off the mortgage, keep the building in good repair and make this venture profitable, all while charging reasonable rental rates. That makes us feel good.

UW Credit Union is part of the community, and partnering with them was the right decision.”

UW Credit Union's Multifamily Residential Business Lending program is designed to support local investors like this couple, who are looking to grow their real estate portfolios and provide quality, affordable housing options in the community.

"We're thrilled to be able to offer this new product and support the important work our members are doing," said Erik Julson, Manager of Multifamily Lending at UW Credit Union. "Helping local investors succeed is core to our mission of improving the financial wellbeing of our community."

UW Credit Union is a strong financial institution invested in our members and their communities. This includes partnering on projects that create affordable housing and financial well-being.