Relationship Building with Local Banks

3 Replies

Hey Everyone,

On the podcasts, it's been mentioned a few times that moving funds and beginning a relationship with local community banks, rather than applying at a national bank (e.g., Chase, BofA, etc), tends to make it easier to get funding for projects.  I'm interested in doing this but am not sure how to start - do I just choose a local bank and open up a checking/savings account there?  Should I make an appointment with one of the bankers at a branch first?  

Out of convenience, I do all my banking at a national one...I'm 'bankable' but don't want to have to go through too many hoops with a loan committee or large underwriting department in order to get financing for a purchase.  I'd like to know what's available to me with regards to amounts, timelines to close, fees, etc., before I start making offers on properties.  Am I going about this incorrectly (buggy before the horse?).  

Any insight would be appreciated - your methodology on your first deal would be helpful as well.  I'm hoping my first deal will be a small multi-family rental.

Thanks,

Mike

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You don't have to open an account in any bank to start relationship with LO. Simply call any branch and ask for assign LO, banker will make an appointment or you can call him. If you have your credit report take with you and your paperwork so they know your liabilities and income.  You can start with your own bank where you are banking and compare with other lenders. 

@Mike B. I'm a big proponent of establishing relationships with local banks. Opening a deposit account is a good way to do that but if you don't know for certain which one you will be borrowing from yet you may end up opening an account and then opening another one elsewhere later on.  

I'd talk with as many local lenders as you are willing and see who is offering what. If you are not ready to borrow money just yet maybe wait until you are, get a loan with a bank, and then open checking/savings there at that time. 

I think mentioned on my podcast that I see a lot of people squander a relationship building opportunity by borrowing on a primary residence from a national lender when that would have been a great chance to build some trust with a local lender who is more likely to help you later on when you start investing.

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