Dalton, GA · Member since 2020 · 21 posts · 7 votes
I’m a first time investor staring out and seeking to acquire my first rental property. Although I don’t know much about financing I’ve begun to do my research and I would just like some input from the bigger pockets community on financing thru a small local bank or a large national bank. Any info is very much appreciated!
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
5y
@Andrew Bravo a small local bank has a lot more flexibility and will treat you like a somebody! They make decisions at the local level-real people decide. With a national bank the decisions are made by a computer; employees are not allowed to think or decide.
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
5y
@Andrew Bravo a small local bank has a lot more flexibility and will treat you like a somebody! They make decisions at the local level-real people decide. With a national bank the decisions are made by a computer; employees are not allowed to think or decide.
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
5y
Andrew,
When it comes to banks local does not mean best or easiest option. Local or small banks can have a lot of in house guide lines and overlays. They can also have a stricter risk policy due to local market either by AVM or by smaller AMC options. Depends on what your looking to finance property type, loan size, Credit score, Income type, DTI, MF/SFR how many units etc. You really want to ask all the right questions and do some research if it's not a traditional deal.
You can always have a broad range of options with a bank/lender that is Fully Delegated and offer both traditional and portfolio loans.
Rental Property Investor · Houston, TX · Member since 2017 · 144 posts · 42 votes
5y
I Agree with @Jason Wray. he knows the game better than most and closes deals! the more info you give in a post the better info youll get from the pros
@Andrew Bravo I’m in the same position. For my first two properties I’ve used OPM to cash finance the deals and then had off the books mortgages that were handled with my personal guarantee. One has been paid off and the second should be soon. Now I am under contract for a 4-plex and have made the decision to go with my personal bank which is a fairly local bank. They probably have about 20 branches, so it’s not tiny but still not a national chain. I feel confident in this decision as I’ve had accounts with them for 24 years and keep a decent amount of money with them.
I feel that the decision between a small bank and a large one is a personal decision that only you can make but one you must feel comfortable with once you’ve made it. Knowing my bank won’t sell my mortgage but keep it in house was one of the deciding factors that helped make up my mind. Also having the ability to call a person who is vested in the outcome if I ever have a problem was another deciding factor for me.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
5y
This depends on the type of loan you are looking to get, but overall the service at a local bank/broker is typically better if you are looking for a good person to person relationship. There won't be much difference in the rates, terms, etc though if that's what you are looking for.