Building a relationship with a lender

[David Acra]

Good day BP! I'm am starting to build my work team and wanted to see what success folks have had with establishing credibility with a lender. I have capital to back up my investment but know that is not enough. Since I have not closed my first deal I am looking for some guidance as to how to begin the conversation. I have identified a list of local banks in Jacksonville, FL area but I need to know what I should expect when I meet with them. I understand first impressions are lasting impressions! What I should prepare? - net worth sheet (definitely) - mock deal? - any other ideas Thank you and I appreciate any feedback

[Bob Razler]

Hello @David Acra .  

I reached out to a local community bank when I started 2 months ago.  I spoke to the head of commercial lending and I let him know what I was planning, my background, my goals, my current financial position, etc.

Once we got past the initial questions and discussion, and I felt that we could work together (eventually) I opened a simple checking account with them just to give them my business.

After a few weeks of communication, I shared my latest deal with them.  Here is my email:

"Good Morning XXXXX:

I just wanted to get you some information on the next investment I am investigating.

Please see the attached report for XXXXXXXXXXXXXXXXX I am inspecting the home tomorrow. If it goes well I will make an offer.

The attached report assumes a commercial loan (25% down) and fully rented.

My other option is an FHA with 3.5% down and I would occupy the main unit.

Please let me know if you feel you would be interested in working with me on this as my lender. I would love to kick-start our relationship with such a great deal.

Also, please let me know if I would be dealing with someone else at XXXX should I opt to go FHA/3.5% rather than commercial.

I am looking forward to working together!

Thank you,"

The report was a full proforma on the property.

I got a very favorable response and I think we will be working together.

Now I am not just trying to get financing for one deal. My long-term goal is to have them serve as a portfolio lender for me, maybe get a relationship with their REO department to pick up some foreclosures or even buy some notes from them.

In the end, it's really just about relationships.  Show them that you have a plan and goals.  Show them that you are a PRO and not just someone hoping to get lucky on a loan.

Break the ice.....reach out!

Bob