Staring out using lenders ( the right lender)

[Gino Prestia]

Hello everyone, as I start my real estate journey I really hope on connecting and partnering with the right lenders. I would appreciate any advice on the vetting processes you used to help find the right person to start your journey with. Totally understand it depends on what kind of investment strategy you want to use, but I feel main concepts still apply ( maybe I am wrong!). Ultimately the goal is to build a great, creative relationship with the right lender whose in my corner and I can trust. Thanks for taking the time to read this and help a guy out! Side Note: Up front capital from my side is not an issue for down payments, and leaning towards the fix and flip strategy to build some cash and roll into a 1031 to ultimately get into the multi family space.  I come from a background of contractors so its something I feel pretty comfortable facilitating. Thanks again!  

[Tanner Lewis]

Quote from @Gino Prestia:

Hello everyone, as I start my real estate journey I really hope on connecting and partnering with the right lenders. I would appreciate any advice on the vetting processes you used to help find the right person to start your journey with. Totally understand it depends on what kind of investment strategy you want to use, but I feel main concepts still apply ( maybe I am wrong!). Ultimately the goal is to build a great, creative relationship with the right lender whose in my corner and I can trust. Thanks for taking the time to read this and help a guy out! Side Note: Up front capital from my side is not an issue for down payments, and leaning towards the fix and flip strategy to build some cash and roll into a 1031 to ultimately get into the multi family space.  I come from a background of contractors so its something I feel pretty comfortable facilitating. Thanks again!  

I would vet lenders by how much they BS you. If someone tells you that they can do your deal with no problem and are smashing all of your other quotes out of the park, something is fishy. I would double-check what numbers they are using to quote you (credit score, cash flow, valuation). I always approach deals by tearing them apart and trying to find holes in them before issues arise during underwriting. It is better to get out in front of these potential issues so you don't waste time and money. 

Ask them if they are a direct lender or a broker. I am a direct lender and still can't tell if some "lenders" are brokers. Many try to dodge these questions. Direct lenders control their guidelines (and can make underwriting exceptions) and only have access to certain lending products. Therefore, they understand those very well. Brokers can access multiple products from different lenders but often don't fully understand the underwriting guidelines. There are pros and cons to each, but the way I see it, if you have a set strategy you plan on implementing over and over again, then you need to find a direct lender who specializes in that investing strategy. If you are doing a one-off deal that is very special (ex., rural quadplex STR) and no direct lender can do the deal, then it makes sense to reach out to a broker and cut them their fee, as they can help you navigate the market more easily to find funding for your deal.