So through a connection, I'm having dinner next Wednesday with the SEVP/CCO (Chief Credit Officer) of a local bank. I'm getting my questions ready, but was wondering if BP Nation had some questions that I could add to the conversation.
What is the intent of the meeting Loc, not sure what questions to offer without knowing the topic?
Well, a friend of mine (very wealthy) participates in funding some loans this bank makes.
My current set of questions will revolve around what their lending guidelines are, what types of portfolios/properties/deals they'll lend against, if they have any bad assets/loans on their books they want to dump, and where/how a small fish like me can become a bigger part of the food chain.
I see. In addition to getting answers to those questions, I would ask if they can offer you a LOC secured by your current note portfolio. The ability to levergae your note protfolio will allow you to buy more without liquidating them.
Im also an officer at my bank. I should be able to answer a majority of your questions if you guys have any.
Loc - letting them know that you are there if they want to foreclose on any properties is a good idea. It can definately give you an inside track on getting the first chance on some decent properties.
Also, depending on the size of the bank, ask if they are having any concentration issues with any asset classes or if there is any particular type of business they looking for. Don't push if he doesn't want to get into it as some CCOs are more liberal than others.
I would really try to go through your friend. I don't want to say ride his coat tails, but you don't have to reinvent the wheel, either.
When I spoke with an officer at a small bank, he was looking to form relationships with investors who would take "commercial" NPN off his hands, so that he didn't have to do the foreclosing. So Loc, you might want to see what types of products they deal with, and see if they need help in any type of exit strategy - unloading might be preferable to foreclosing.