Best Local Northwest Lenders?

Question

Hi BP!

I'm looking to buy a primary residence (sorry Grant!) in the Olympia, WA area, but also am looking at buy-and-hold deals and flips in and around the South-Sound area. I want to start establishing long-term relationships with a lender so that when I need portfolio or other loans, I have already built that relationship.

Any recommendations for local lenders for conventional mortgages and also any good hard-money lenders in the area?

Thanks BP!

Albert Bui · Answer

by understanding how your taxes are interpreted by lenders and banks you will know how to "strategically," file them by either maximizing deductions, forgoing deductions, and or deferring certain deductions may allow you to maximize your ability to qualify for what you need going into the next year(s) while still giving you optimal tax reduction. Its a balance for each individual some people dont need to qualify for anything next year so they may load up on as many deductions or go very aggressive on their deductions while a person who is intending to keep their bank options open may find a balanced approach.

If you're accountant isnt talking to your lender or your lender does not understand how your taxes affect your borrowing power then its like the left hand doesnt know what the right hand is up to.

Albert Bui · Answer

ABL or asset based loans = high rate since you're only backing the note with the asset itself (not credit, not income).

You definitely dont want to tell your lender you intend to over leverage yourself higher than your ability to repay lol thats for sure!

How can you leverage bank lending options and do it while keeping your ability to qualify consistent?  You'll have to plan thoroughly, keep good financial records Profit and losses, use quick books or other software, file tax returns strategically, buy right, cash flow massively because banks love consistent cash flow, and dont highly over lever yourself in a manner where one incident will bring you to the brink of CH 7 BK. =)

Albert Bui · Answer

Appreciate it Isaac.

Common scenarios I've worked on lately that might apply:

- self employed people looking for 1 year tax return qualification, helps people who have higher income on their 16 returns when 15' returns were not so high in income

- people buying cash and want to plan for a delayed financing exception refinance and want to get an idea of what a probable appraisal will come in at to make sure they are going to get most or all of their original money back

- cash out refinances to rebalance rental portfolios or planning for future acquisitions or paydowns/payoffs

- Flipping within a corporation/LLC vs flipping outside of an entity or in your personal name, income is calculated differently or sometimes not used at all in your personal name (has to planned way in advance)

- use of 1st position line of credit AIO - "all in one," loan to help debt pay down acceleration strategies along with allowing borrowers the ability to access their equity for future real estate investing deals, opportunities, and rehab money available for capital projects, etc

- many more...

Nghi Le · Answer

@Justin Koehn @Tyler Blackwell

Flipper here as well, primarily in Pierce County but also in King and Kitsap.  I've borrowed from a dozen different hard money lenders, including most of the local ones like Eastside, Veristone, Inland, RFG, Builder's Cap, and Intrust.  In the past year, I've started branching out to lenders outside of our state who offer much more competitive terms.  I'm now getting hard money cheaper than some people's private lenders.  I'll PM you more information.

Justin Koehn · Answer

Again, awesome response. Thank you again for the information and direction!

Ike Hobbs · Answer

Talk to @Albert Bui as he's an investor himself and very familiar with the ins and outs of investment lending from the normal homeowner to the investor.

Tyler Blackwell · Answer

I've worked with a few lenders in the area, and I've enjoyed having a couple to work with in case something doesn't work.

I like Brandy Nelms at Guild for conventional mortgages as well as refinances post-hard money purchase. She's easy to work with and gets things done. Olympia Federal Savings is a classic portfolio lender. We have our personal accounts here as well as our business accounts, and they'll loan on things other banks won't. They also offer personal lines of credit, completely unsecured, based on your income, which can come in handy for investing in real estate. Also, Ryan Guisness with Absolute Mortgage (actually in Bellevue, not Oly) did the last refi we did on a hard money loan/remodel. They do cash-out refis after 6 months, if you need that. They require a bit more paperwork than some other lenders, but they're real professionals.

For hard money, Eastside funding is cheapest but you may get what you pay for, and I've used Veristone capital, which is a point more but you get what you pay for ;)  Good luck in Oly! Let me know if there's a deal you need to pass on!

Justin Koehn · Answer

Great info, Albert. Thank you! I'm curious what you mean by file tax returns strategically. I know I should talk with a CPA, but I'm curious what you're thinking is on that.

Justin Koehn · Answer

Thanks @Isaac Hobbs for the great recommendation.

@Albert Bui - I'll PM you about my situation more specifically.

Appreciate the input from all.

Question to you all - What is the best way to start building those relationships that will pave the way for a long-term lending relationship? I am planning (with a little luck and work) to be applying for WAY more debt than my income will facilitate on its own, so I want to seek out and work with lenders who understand REI and are willing to do portfolio and asset-based loans.

Justin Koehn · Answer

@Tyler Blackwell @Nghi Le

Thanks Tyler and Nghi. I will definitely give those guys a call and look into opening personal and business accounts with Oly Federal. The 6 month seasoning is definitely something I am interested in.

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