Why Local Banks Can Be a Hidden Gem for Investors

Question

Something I’ve learned while starting out is that local banks and credit unions can sometimes be more flexible than big banks when it comes to investment loans. They actually get to know you, not just your numbers. Definitely worth building those relationships early.

Erik Estrada · Answer

Yes Local banks are great for those very niche specific loans. I find though sometimes they are not the most aggressive compared to the bigger lenders on straight forward deals. It definitely helps to have contacts with both the regional/local banks alone with national lenders.

Jules Aton · Answer

I thought those days were mostly gone but years ago they were priceless. One small neighborhood bank where I was doing renovations never foreclosed they just found another buyer. I walked in one day to deposit a check and the bank manager asked me if I would be interested in purchasing a shell that was in arrears for the amount owed. It sat for about 6 months because I was busy and I ended up selling to another investor for $50,000 profit without doing anything to it.

Why Local Banks Can Be a Hidden Gem for Investors

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