How to Find Lenders

Question

Hi BP community,  being new to REI and preparing myself to get my first property I wanted to ask how to go about seeking lenders.  Do investors get preapproved from multiple sources or multiple types of lending?  There are so many lenders and types of lending I am interested to learn the process.  I am certain as I get established this will make more sense and I may work with a select lender(s) regularly.  Thanks for your consideration and input.  Kevin

Robin Simon · Answer

You should likely seek out a mortgage broker (an intermediary who works with lots of types of lenders) that can present you options for the different loan types (conventional, DSCR, bank/credit union, etc.)

Nick Belsky · Answer

@Kevin L Owens

Find a mortgage broker and save yourself the headache and time of searching so hard.  I would recommend working with at least two brokers.  None of us have access to every lender or program out there, so by using a two or more you can really diversify and find the best programs for your deals.  The best part is that you supply the info we need and we do all the work for you...

Cheers!

Joe Minteer · Answer

Calling doesn't hurt either.  I was talking to a property manager, and he gave me a local bank to work with.  I originally sent an email, but got no response, so I called.  Very nice talk and easy, and now I have another contact made.  Banks don't usually advertise that they work with investors that are looking to refinance short term loans, so it's best to talk to other investors that have had loans through the local banks.

Eliott Elias · Answer

The best lenders usually go to local real estate meet ups and are investors as well. Pick them based off referrals.

Chris Seveney · Answer

@Kevin L Owens

Check out Scotsman’s guide and American association of private lenders.

Dylan M. Davis · Answer

Hi Kevin, welcome to the BP community and congratulations on taking the first step towards real estate investing! Seeking out lenders is a crucial part of the process, so it's great that you're already thinking about it.

To answer your question, it's definitely a good idea to get preapproved from multiple sources or explore multiple types of lending. This will give you a better understanding of the different options available to you, as well as allow you to compare rates and terms..

As you mentioned, as you become more established in the industry, you may work with a select lender or lenders regularly. Building strong relationships with lenders can be beneficial in the long run, as they can provide you with funding for future deals and potentially offer better rates and terms.

How to Find Lenders

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