I ran into something similar recently when financing a converted industrial property. The bigger lenders I approached had rigid checklists, and if your property didn't neatly fit their criteria, the process stalled quickly. Smaller banks were more open-minded but cautious—had to go in prepared with detailed documentation on zoning, comparable sales, and even local market trends. Took extra effort, but presenting clear evidence upfront definitely smoothed things over. Seems like banks just prefer clarity and predictability, regardless of their size.
Your experience mirrors mine closely. Recently, I had a similar challenge with a mixed-use redevelopment project. Larger institutions seemed hesitant because the property didn't neatly align with their standard risk models. Smaller lenders were indeed more flexible, but they required extensive market analysis and zoning clarifications upfront. It was tedious, but having thorough documentation ready definitely helped ease their concerns. Seems like banks just want reassurance that they're not stepping into unknown territory... your approach sounds spot-on.
"Seems like banks just want reassurance that they're not stepping into unknown territory..."
This is exactly what I've found too. A couple years ago, I was helping a friend navigate financing for a quirky historic building downtown. Big banks wouldn't touch it because it didn't fit neatly into their checkboxes, but a local community bank stepped up after we provided detailed market comps and zoning docs. Still, it felt like jumping through endless hoops. Curious, did you find that personal relationships with lenders made a noticeable difference, or was it mostly about the paperwork?
Totally relate to this. When I was trying to finance a mixed-use property (coffee shop downstairs, apartments upstairs), the big banks acted like I'd asked them to fund a spaceship or something. 😂 But yeah, personal relationships definitely helped smooth things out. Once my lender saw I wasn't some random person off the street—and after a few rounds of coffee and small talk—things magically got easier. Paperwork still mattered, but trust me, knowing someone on the inside shaved off weeks of headache...
