What to look for in a lender?

Question

Andrew Postell · Answer

@Jarrod Murrell this is a very common issue.  Sometimes when you are new you don't even know what the right questions are to ask.  And with investing, just seeing a rate may not lead to having the best loan for us.  Not only would I recommend for you to interview your lenders and keep in mind that they are earning YOUR business, not the other way around, but to also ask some very specific investor questions:

Questions for Lenders

• When do you start using rental income to help me qualify? (the      answer needs to be immediately)
• 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)
• 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)
• Can I change title to my LLC?
• Do you sell your mortgages?
• What is your loan minimum?
• Can you explain to me what your reserve requirements are?

If your lender can answer these questions then that will tell if you if you are at a good lender or not.  Hope this helps!

Craig Sloan · Answer

I think you want someone who is competitive in the market, wants to see you succeed and you feel comfortable with.  I think the best strategy is to ask others in your local market who they use.  Interview several, including some small local banks, they may be more relationship focused than the larger banks.