Mortgage Broker or Community Bank?

[David Olson]

I have been speaking with some Hard Money Lenders in an attempt to fund my first BRRRR deal. I found one that seems like a one stop shop. For both Residential and Commercial properties they offer Hard Money, Traditional Loans, and Portfolio Loans. If I use this company wouldn't I be missing the opportunity of establishing a relationship with one bank?

I hear alot on the podcasts and on BP that establishing a relationship with a local community bank who offers portfolio loans is the way to go which I agree. However if I use the HML I described above does't that defeat the purpose and in the long run could hurt my buying potential?

Would I be best to use a HML for ONLY Hard Money and then find another source for the cash-out refi and begin building with a long-term relationship with a local bank?

Here are their numbers for those curious:

Property Types	1-4 single-family properties
Market	Houston, Austin, San Antonio and Dallas/Fort Worth, Texas
Loan Amounts	$50K-$400K (Minimum $100K outside of Houston)
Term	6 months
Amortization	Interest-Only
Rate	12%
Fees	3% (can be rolled into loan if LTV allows)
LTV	Up to 75% of the “after-repaired” value
LTC	Up to 100%
Qualifying	Must be able to qualify for conventional financing
Recourse	Yes