Questions to ask when searching for a REI-friendly bank.

[Renee Yarbrough]

I want to open a new account with a REI-friendly bank in Chattanooga, TN.

1. What questions should be asked when exploring bank options?  

2. Do any Chattanooga investors on BP have bank recommendations? 

[Brian Levredge]

I'm in Chattanooga and have relationships with a number of different lenders. That being said it really depends on what type of asset class you're wanting to purchase. Some of the portfolio lenders down here have tightened up on single family (1-4 unit) and are only doing 15 yr ams, which kills your cash flow. BRRR is also harder for a couple reasons. First is that appraisals are starting to come back not so great on some deals (signs of the market inflating) or the lenders are wanting you to demonstrate your basis in the property so they can make sure you still have skin in the game which defeats the purpose of BRRR. Put more directly, be prepared to keep a decent chunk in whatever you are buying. The fact you are out of market will also work against you somewhat if you don't have local management in place. Some banks absolutely won't touch you for that very reason even if you have local management. If you want to DM me I can send some referrals your way.