Bank and Loan officers suddenly go silent
Member since 2023 · 122 posts · 68 votes
Bank and Loan officers suddenly go silent
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Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votesQuote from @William Powell:
Good good credit, 6 properties paid off with plenty of equity. I went to local bank president and spoke with them everything sounded good. I told them that I wanted to do a cross collateralized line of credit so I can buy properties at discount fix them up and refi out of them and pay back the line of credit. The bank says this is what they do. I gave them all the paperwork and more in a packet they needed. It's been a week ago and haven't heard from them since. I called it was told they had loans in front of me and they were busy but would call me the next day but no call. This seems to be commonplace when I go to the bank. I posted this because I see no one Speaking on the bank ghosting you. They don't say no or this is what we'd like to see better. The loan officer just moves on as if you never spoke or submitted an application. What am I missing?
I think this represents a good example of the marketplace for loans when considering Banks / Conventional Lenders vs. Private Lenders with the Pros and Cons of each
One of the potential cons of Banks is that while your rate may be a big lower, they are much slower moving, have less flexibility (face more beauracracy and regulation) and sometimes can be super less responsive like this.
A good private lender on the other hand may have rates a tad higher, but its more likely to move much faster, have much more responsive and better service and have the flexibility to get deals done.
Harpoon Capital514 Reviews
15 Replies
- Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes3y
Have you tried any other local lenders? I have mostly had positive experiences with local banks and credit unions.
- Member since 2023 · 122 posts · 68 votes3y
Quote from @Charles Carillo:
Have you tried any other local lenders? I have mostly had positive experiences with local banks and credit unions.
Yes. I was able to do a cash out refi with a local bank but when I tried them they said they didn't do line of credit on investments only personal. So I went to another local bank and they told me they would do it. I do have a cc with a high balance but that's to easy to tell me that they would like that paid off.
- Lender · Boca Raton, FL · Member since 2017 · 42 posts · 11 votes3y
William,
If they don’t respond and you want something quicker, we can assist depending on the state -
Quote from @William Powell:
Good good credit, 6 properties paid off with plenty of equity. I went to local bank president and spoke with them everything sounded good. I told them that I wanted to do a cross collateralized line of credit so I can buy properties at discount fix them up and refi out of them and pay back the line of credit. The bank says this is what they do. I gave them all the paperwork and more in a packet they needed. It's been a week ago and haven't heard from them since. I called it was told they had loans in front of me and they were busy but would call me the next day but no call. This seems to be commonplace when I go to the bank. I posted this because I see no one Speaking on the bank ghosting you. They don't say no or this is what we'd like to see better. The loan officer just moves on as if you never spoke or submitted an application. What am I missing?
- 3yDevin PetersonBusiness MemberLender · Sarasota, FL · Member since 2022 · 2k+ posts · 664 votes
Hey William,
Have you thought about DSCR cash out with no PPP? If your goal is to just borrow a little amount and not have huge debt. There are lenders out there that go down to $75,000 on first leans and just pay it off once you make a profit from the sale of new properties.
ProAlpha Capital56 Reviews - 3yErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @William Powell:
Good good credit, 6 properties paid off with plenty of equity. I went to local bank president and spoke with them everything sounded good. I told them that I wanted to do a cross collateralized line of credit so I can buy properties at discount fix them up and refi out of them and pay back the line of credit. The bank says this is what they do. I gave them all the paperwork and more in a packet they needed. It's been a week ago and haven't heard from them since. I called it was told they had loans in front of me and they were busy but would call me the next day but no call. This seems to be commonplace when I go to the bank. I posted this because I see no one Speaking on the bank ghosting you. They don't say no or this is what we'd like to see better. The loan officer just moves on as if you never spoke or submitted an application. What am I missing?
It honestly sounds like they are dragging your deal because it's not profitable to them. I see this happen on LOCs, and Mortgages below $100,000.
If you told them you'd prefer to do a cash out refinance, they would jump in a heart beat.
Also what they said is true, If you are going to a bank that only offers this product, Likely they have several investors in the same position as you are in, waiting for answers. It's supply and demand.
LuxePrivate Investments LLC 572 Reviews - 3yRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
Quote from @William Powell:
Good good credit, 6 properties paid off with plenty of equity. I went to local bank president and spoke with them everything sounded good. I told them that I wanted to do a cross collateralized line of credit so I can buy properties at discount fix them up and refi out of them and pay back the line of credit. The bank says this is what they do. I gave them all the paperwork and more in a packet they needed. It's been a week ago and haven't heard from them since. I called it was told they had loans in front of me and they were busy but would call me the next day but no call. This seems to be commonplace when I go to the bank. I posted this because I see no one Speaking on the bank ghosting you. They don't say no or this is what we'd like to see better. The loan officer just moves on as if you never spoke or submitted an application. What am I missing?
I think this represents a good example of the marketplace for loans when considering Banks / Conventional Lenders vs. Private Lenders with the Pros and Cons of each
One of the potential cons of Banks is that while your rate may be a big lower, they are much slower moving, have less flexibility (face more beauracracy and regulation) and sometimes can be super less responsive like this.
A good private lender on the other hand may have rates a tad higher, but its more likely to move much faster, have much more responsive and better service and have the flexibility to get deals done.
Harpoon Capital514 Reviews - Member since 2023 · 122 posts · 68 votes3y
Quote from @Robin Simon:
Quote from @William Powell:
Good good credit, 6 properties paid off with plenty of equity. I went to local bank president and spoke with them everything sounded good. I told them that I wanted to do a cross collateralized line of credit so I can buy properties at discount fix them up and refi out of them and pay back the line of credit. The bank says this is what they do. I gave them all the paperwork and more in a packet they needed. It's been a week ago and haven't heard from them since. I called it was told they had loans in front of me and they were busy but would call me the next day but no call. This seems to be commonplace when I go to the bank. I posted this because I see no one Speaking on the bank ghosting you. They don't say no or this is what we'd like to see better. The loan officer just moves on as if you never spoke or submitted an application. What am I missing?
I think this represents a good example of the marketplace for loans when considering Banks / Conventional Lenders vs. Private Lenders with the Pros and Cons of each
One of the potential cons of Banks is that while your rate may be a big lower, they are much slower moving, have less flexibility (face more beauracracy and regulation) and sometimes can be super less responsive like this.
A good private lender on the other hand may have rates a tad higher, but its more likely to move much faster, have much more responsive and better service and have the flexibility to get deals done
Thanks for the response. I think as investors we like to stick and move but the banks move much slower. I finally got responses from the local banks but I see it's going to move slower than I anticipated.
- 3yRobin SimonBusiness MemberLender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
Quote from @William Powell:
Quote from @Robin Simon:
Quote from @William Powell:
Good good credit, 6 properties paid off with plenty of equity. I went to local bank president and spoke with them everything sounded good. I told them that I wanted to do a cross collateralized line of credit so I can buy properties at discount fix them up and refi out of them and pay back the line of credit. The bank says this is what they do. I gave them all the paperwork and more in a packet they needed. It's been a week ago and haven't heard from them since. I called it was told they had loans in front of me and they were busy but would call me the next day but no call. This seems to be commonplace when I go to the bank. I posted this because I see no one Speaking on the bank ghosting you. They don't say no or this is what we'd like to see better. The loan officer just moves on as if you never spoke or submitted an application. What am I missing?
I think this represents a good example of the marketplace for loans when considering Banks / Conventional Lenders vs. Private Lenders with the Pros and Cons of each
One of the potential cons of Banks is that while your rate may be a big lower, they are much slower moving, have less flexibility (face more beauracracy and regulation) and sometimes can be super less responsive like this.
A good private lender on the other hand may have rates a tad higher, but its more likely to move much faster, have much more responsive and better service and have the flexibility to get deals done
Thanks for the response. I think as investors we like to stick and move but the banks move much slower. I finally got responses from the local banks but I see it's going to move slower than I anticipated.
It could also be smart to get a term sheet or two from some private lenders to leverage the banks to move quickly. Essentially give them the competing offer and say "unless you can execute fast here I'm going with this option"
Harpoon Capital514 Reviews - Investor · Coppell, TX · Member since 2018 · 311 posts · 166 votes3yI am not exactly sure what is going on with your bank, however, I had similar experience when I was refinancing from "my" bank (I already had a loan with them). Everything was approved, even then it took several weeks and constant follow up before the loan closed.
Quote from @William Powell:
Good good credit, 6 properties paid off with plenty of equity. I went to local bank president and spoke with them everything sounded good. I told them that I wanted to do a cross collateralized line of credit so I can buy properties at discount fix them up and refi out of them and pay back the line of credit. The bank says this is what they do. I gave them all the paperwork and more in a packet they needed. It's been a week ago and haven't heard from them since. I called it was told they had loans in front of me and they were busy but would call me the next day but no call. This seems to be commonplace when I go to the bank. I posted this because I see no one Speaking on the bank ghosting you. They don't say no or this is what we'd like to see better. The loan officer just moves on as if you never spoke or submitted an application. What am I missing?
I also own a brick-n-mortar non-real estate business in Texas, there is a shortage of staff everywhere. I spoke to my personal bank manager (another bank), she told me the same thing. So it may be possible, that they have many loans and not enough staff to process them fast enough. - Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes3y
Cross collateralized line of credit is probably not something your bank has a product set up for. They could have told you this day one. If all the properties are residential (under 4 units) and you ask for a CRE commercial type loan these are not similar.
Anyone who is experienced mortgage / loan / lender is not busy. @Amir Khan there is no shortage of excellent mortgage people to hire. More than a million people in mortgage have been laid off. It may be that the bank only pays minimum wage ....
- 3yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Caroline Gerardo:
Cross collateralized line of credit is probably not something your bank has a product set up for. They could have told you this day one. If all the properties are residential (under 4 units) and you ask for a CRE commercial type loan these are not similar.
Anyone who is experienced mortgage / loan / lender is not busy. @Amir Khan there is no shortage of excellent mortgage people to hire. More than a million people in mortgage have been laid off. It may be that the bank only pays minimum wage ....
what you may want to do is look for a guidance line and then use those props to collateralize the guidance line.. and it has to be big enough to make it worth the effort.. in Community banks the president or whoever your dealing with has a loan limit that does not require loan committee over that limit they have to put a presentation together to take to loan committee and present your loan request.. Normally they can go 250 o 500 k and sometimes a million with no loan committee. So it just takes time.. this is why there is a niche for HML that can fund in 3 to 6 weeks.
Also they are going to want to see a substantial banking relationship as well. Community banks live and die on deposits. - Lender · Denton, TX · Member since 2023 · 349 posts · 80 votes3y
Quote from @William Powell:
Good good credit, 6 properties paid off with plenty of equity. I went to local bank president and spoke with them everything sounded good. I told them that I wanted to do a cross collateralized line of credit so I can buy properties at discount fix them up and refi out of them and pay back the line of credit. The bank says this is what they do. I gave them all the paperwork and more in a packet they needed. It's been a week ago and haven't heard from them since. I called it was told they had loans in front of me and they were busy but would call me the next day but no call. This seems to be commonplace when I go to the bank. I posted this because I see no one Speaking on the bank ghosting you. They don't say no or this is what we'd like to see better. The loan officer just moves on as if you never spoke or submitted an application. What am I missing?
Hello William,
It's unfortunate they have bad communication and have left you high and dry. Is your FICO reasonable? I am guessing there is a reason they have left you high and dry. Time and communication should be of the essence to them. That is inappropriate
- Member since 2023 · 122 posts · 68 votes3y
Quote from @Jay Hinrichs:
Quote from @Caroline Gerardo:
Cross collateralized line of credit is probably not something your bank has a product set up for. They could have told you this day one. If all the properties are residential (under 4 units) and you ask for a CRE commercial type loan these are not similar.
Anyone who is experienced mortgage / loan / lender is not busy. @Amir Khan there is no shortage of excellent mortgage people to hire. More than a million people in mortgage have been laid off. It may be that the bank only pays minimum wage ....
what you may want to do is look for a guidance line and then use those props to collateralize the guidance line.. and it has to be big enough to make it worth the effort.. in Community banks the president or whoever your dealing with has a loan limit that does not require loan committee over that limit they have to put a presentation together to take to loan committee and present your loan request.. Normally they can go 250 o 500 k and sometimes a million with no loan committee. So it just takes time.. this is why there is a niche for HML that can fund in 3 to 6 weeks.
Also they are going to want to see a substantial banking relationship as well. Community banks live and die on deposits.Thanks for your response. The local bank told me I would need to use my line of credit at their bank. Ofcourse I agreed.
- Member since 2023 · 122 posts · 68 votes3y
Quote from @Amir Khan:
I am not exactly sure what is going on with your bank, however, I had similar experience when I was refinancing from "my" bank (I already had a loan with them). Everything was approved, even then it took several weeks and constant follow up before the loan closed.Quote from @William Powell:
Good good credit, 6 properties paid off with plenty of equity. I went to local bank president and spoke with them everything sounded good. I told them that I wanted to do a cross collateralized line of credit so I can buy properties at discount fix them up and refi out of them and pay back the line of credit. The bank says this is what they do. I gave them all the paperwork and more in a packet they needed. It's been a week ago and haven't heard from them since. I called it was told they had loans in front of me and they were busy but would call me the next day but no call. This seems to be commonplace when I go to the bank. I posted this because I see no one Speaking on the bank ghosting you. They don't say no or this is what we'd like to see better. The loan officer just moves on as if you never spoke or submitted an application. What am I missing?
I also own a brick-n-mortar non-real estate business in Texas, there is a shortage of staff everywhere. I spoke to my personal bank manager (another bank), she told me the same thing. So it may be possible, that they have many loans and not enough staff to process them fast enough.Thank you. I was told there were loans ahead of me. So I will be patient. From the investor point of view speed is important but I understand I am in the dating phase.
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