What to look for in a community bank for your first rental

2 Replies

Hello Bigger Pockets, 

I found my deal and am ready to find a bank to start my investing journey with. What criteria should I be looking for when choosing a bank. I’ve read to go with a local community bank but am wondering what I should be specifically looking/asking for/about when deciding. Anything I should definitely stay away from? 

Thank you! 

@Account Closed

It doesn't matter what bank you use. As far as the term on the loan they offer fits your criteria and your deal. Let's say if a big bank offers 30years fixed rate at 3% and local offers 20 years amortization with 12 years balloon and 4%, I'd go with the big bank. But again, it all depends on your plan and the deal you're looking at.  

@Account Closed It depends what your future goals are. If you're likely lookin for this purchase and nothing additionally, any bank will do. If you're interested in building a rental portfolio, then bank selection is critical. The best advice I could give on this topic is to talk with local investors, ideally from your local REI group. I found the bank I work with through a referral from a guy I happen to sit next to at a random REI meeting. It turned out that this bank offers loans for remod's and doesn't require a 12Mo seasonality to refi out. This is the best case scenario because I'm able to BRRR these houses as fast as I can find them.

Good luck!

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