Relationships With Banks
I have heard that forming a relationship with a small local bank is a good idea. I understand that if you get into a good rapport with the loan officer then the money will flow easier. That makes sense. My question is, should a beginning investor attempt to follow this advice right away, or wait until they have a few deals under their belt? Eventually it would mean access to better financing deals but for now brokers seem to have more options and are more flexible. Thanks for any insight!
Developing a relationship with a community bank can help jumpstart your REI career. When I have to deal with banks,I prefer the smaller community banks. Get to know the staff,everyone from the tellers to the president. It will pay off. And you are right that mortgage brokers are more flexible. But having both on your team can only help.
The principle of having a banker on your side is a good one.
Was the original question specific to notes or just a general question concerning bankers and real estate investing?
John
[addsig]
My question was just a general one. I asm just trying to figure out the best path to start looking for financing. Thanks.
When I started investing full time, bank relationships and my ability to borrow money was my biggest worry. I had strong relationships with several people who were big bank customers or had strong ties to a bank. I ask them to introduce me to their bankers. This worked extremly well and continues to work for me. Having a common tie and someone to vouch for me goes a long way.
Also, when I am seeking financing I give the Banker a package on the deal that has all the information he needs to make a decision. This package includes: propectus, pro formas, plats, appraisal, financial statements, account information, etc. This just blows a banker away because most poeple don't do this. That banker will think that you are pro who really knows what you are doing when you give him such a package. [ Edited by pspiers on Date 04/19/2004 ]