how did you build you bank relationship?

Question

I've been reading a few posts about the benefits of bank relationships. I'd appreciate hearing stories from folks that have been successful at it.

One approach I read about was placing a deposit in a bank, then asking for a line secured by the deposit. After you pay it back, as for a partially secured line. Repeat over and over. Does this approach work? What might work better?

Thanks!

George P. · Answer

dale, i know what you are talking about..

i was with chase (personal account) when i realized i need to change it to business account. So, they give me some rates of $20/month for having a business account with some crazy "benefits" that would be good for noone. I said, no thanks. They asked me to open up a credit card and spend $500 a month to avoid the fee. I just laughed in their faces.

2 different people i talked to said, "my hands are tied". i said "fine, give me my money right now, i am going to TCF, where they dont charge monthly fees".

one person said "dont forget that the fee is tax deductible". i said, "so what? that's not the point". idiots.

Jameson Sullivan · Answer

I was very nervous first walking into the bank because i am young and have ZERO experience but i grew a pair chose a few banks and just walked in to one of the small regionals around here. They were SO receptive and helpful and wanted to give me money. I think youre thinking too much. Its good to have a relationship but at the end of the day, lending money is a service and if they dont lend money, they dont make any money. My advice, know what you want when you walk in the doors, even if thats just for them to anwer a few questions. Just know what youre going in for and take yourself seriously. Lets be real, if you dont take yourself seriously, theyre not going to either. Best of luck.

Jameson M Sullivan

Account Closed · Answer

Ed Lee,

You said Hancock Bank.  Where are you located?  I'm just asking because I'm on the MS Gulf Coast where Hancock Bank started.

Daniel

Paolo Ruggieri · Answer

my experience has been that you need to keep asking around every time you need financing... Every bank has different programs at different times. WF refused to do a secured loan saying I own too many residential properties ... Two weeks later I received a letter from wellsfargo saying they have a promotion of unsecured lines of credit, I applied and they gave me a 40k unsecured line at prime +1% ... Out of all logic to approve me unsecured, but deny me secured... I did 3 wonderful loans with bb&t (4% rate, 80% ltv)... When I came for the 4th one they told me they shut down the program... Do not seek relationships... Just make 20 calls every time you need credit and pick the best one...

Account Closed · Answer

Haha nice.  No, I don't know them.  I'm over here in Ocean Springs, on the other side of the coast.  I've got a few contacts in hattiesburg, my brother in law's family.

If you're ever down this way give me a shout, I believe we're the same age.  Once I'm done piling up money to buy rental properties, I'll get a boat and we could go fish the Oil Rigs about 50 miles offshore.

Ed L. · Answer

I'm right up the rode in Hattiesburg... My highschool prom was at the Hancock Bank in GP lol...

Last name is Vines btw... Was concerned about using last name on the forum and receiving a bunch of junk offers.

Do you know the guys over at Regional Realty in the Kiln?  Mr. Frierson is a good friend and mentor... I think that whole crew has decided to ditch real estate for politics lol..

Ed L. · Answer

Nope it's unsecured.

I pulled out 10K last month to pay for renovations on my rental house and make a interest payment on a flip I'm working and the total payment due was $10.xx .

I plan to use either my rental property or a piece of raw land I have paid for as collateral to bring it up to about 100K.

At that point I could really start buying REO with cash..  Renovate, Rent, & Refi...  That's my plan anyhow.

Will Barnard · Answer

Have you read these threads yet Ed?
http://www.biggerpockets.com/topics/65985-stop-doing-business-with-bofa-?forum_id=92&page=1
and
http://www.biggerpockets.com/forums/92/topics/60374-b-of-a-sucks-official-thread

Jim Stardust · Answer

I found success by getting to meet and know folks outside of their banking jobs.  There are so many venues when you can meet people, either through friends, colleagues, church, golf, you name it and then if you find out they're in the banking industry, they can either help you or introduce you to someone that can help you.  Otherwise, like any relationship, it takes time and work to build trust and mutual understanding with a banker.  I agree, locally-owned or operated banks or credit unions are better for cultivating a good relationship but if you find a good banker at a major bank, you can also find success.  It helps if you refer friends/relatives/colleagues to that "person" or bank so they know you're an asset.

In a couple of instances where I got good service and good products, I wasn't hesitant to let the broker's boss know how much I appreciated the service. A simple email, letter, or just a quick face to face to a manger/VP in that branch will do wonders.  In one of those instances, the person went above and beyond to get me a deal the next time around, got that same manager involved and they were able to pull it off.  It takes work, I've seen people invite their bankers to a sporting event or dinner/drink after work when they have a major deal to work on, or send a nice "thank you" gift when it's all done.

George P. · Answer

i have not talked to banks about loans yet. i just moved my account to a smaller bank. i think they still might be big enough that they will not give me loans to rehab my properties.

we will see.

how did you build you bank relationship?

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