Need help asking my banker

[Naomi W Scales]

Hello, let me introduce myself. I'm Naomi W Scales and I'm new to bIgger PocKETS . I have decided to jump into real estates after the age of 50. I own a business its a full service janitorial and lawn care company. My business partner has quite a few co-workers who have several rental properties and they have encouraged us to look into rental properties. So, I have been reading the books and listening to the PODCAST. So, to my question I reached out to our credit union because we have a business line of credit with them . We don't plan on using the same business entity for our rental business. I asked them about portfolio lending and she got back to me with some responses that are positive but now I'm feeling kind of LOST because I'm still in the baby stages. I need help in responding to the following request from her. Can you point me to where I can get some tools to help on this. Here question to me below: BANKER RESPONSE: Just a quick note to say that I’ve reviewed your initial proposal and will be running some global cash flow numbers to see how they look. I’ve requested financials from our back office, and should be able to finish the review by Wednesday. I will need a 3 year cash flow projection on the new business entity. Would it be possible to get your mentor to support us on that front? While I did see the cash flow projections initially provided (great tool), it didn’t put the needed information into a 3 year projected period of time. The first year of the projections needs to be broken down month-to-month, and written assumptions should accompany the projections. I know that’s a lot of information to digest, so if you would like to talk more about it please let me know. We can schedule a conference call or webinar meeting to talk further. Thank you ladies for your help! Thank you Naomi W Scales

[Andrew Postell]

@Naomi W Scales sorry I didn't catch this post sooner but I would suggest that you ask your lender a few questions in the interview process to see if they are any good at lending on investment properties.  Here's the question i would suggest: 

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
2. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
3. What is my minimum down payment required? (not so important but if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
4. Can I change title to my LLC?
5. Do you sell your mortgages?
6. What is your loan minimum?
7. Can you explain to me what your reserve requirements are?
8. Are you qualifying me for a Fannie/Freddie loan or a portfolio/commercial loan? (you would need to know what the difference is here)

Hope this helps in some way.  Thanks!