Can you recommend a bank in DFW area for investors?

[Clay Gradis]

I'm ready to refi my 8 units in Fort Worth, rehabs are done and the units are rented up.  Do you have a banker you would recommend in the area?  I will be on site this Friday/Saturday and would like to meet with a couple of bankers.

Also, I need to decide how to refi them, the units are 4 duplexes or 2 quads or 8 total units.  Have to see which way gives me the best deal.  Any advice appreciated.

[Andrew Postell]

@Clay Gradis thanks for posting about this.  Fort Worth is still a great place to invest in and our real estate market certainly shows that.

Now, if you are refinancing the properties the important question is "how did you purchase them"?  So if you purchased them with cash - there's specific strategies for that.  If you purchased them with several loans - there's strategies for that.  And if you purchased them with 1 loan - also a different strategy.

If your end "goal" is to have them each in a separate 30 year, fixed rate loan I think that's a pretty reasonable approach.  Then you could sell them at different points if something were to come up.  As opposed to just 1 "blanket" loan which would charge you a pretty big fee to sell or refinance 1 property at a time.  There's pros to blanket loans though too but most of the time the standard 30 year fixed rate will allow you to cash flow the best on these properties.

I also agree that you should not use large banks.  I'm a little biased here...mainly because I'm an investor too.  I've worked at very large banks - they're out.  Just too many restrictions.  The hard thing is:  how do I know if I am using a good, investor friendly lender?  So I made some questions for you to ask while you are out there interviewing.  Use these questions and feel free to tag me with anything else that I may help with.  Thanks!

Questions for Lenders

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
2. When do you start using “After Repair Value” on my property?
3. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
4. What is my minimum down payment required? (if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
5. Can I change title to my LLC?
6. Do you sell your mortgages?
7. What is your loan minimum?
8. Can you explain to me what your reserve requirements are?