My lender dumped me..

[Alex Keathley]

Hey there BP Community!

As the title states, I was dumped by my lender today. 😢 When I was out and about running errands I received an email from my lender stating that they will not be able to do any more cash-out refis for my company until I have a more proven track record of profits. They said I would need to wait close to a year until I could do anymore with them. I have had a great experience with this lender and have successfully BRRRRed five homes with them the past 6 months. I was shocked to receive this email.

To give a little background, this lender is a portfolio lender. I met with them at the beginning of the year when I was searching for a new partner. I've heard great things about them from other investors, so I thought it would be worth a shot establishing a relationship. I told them exactly what I planned to do in the next 3-5 years with the BRRRR strategy and they were all about it. They said there would be no limit on how many loans, 80% LTV on cashout and no waiting period after you buy to Refi, etc. Seemed like a perfect match.

I reached out to quite a few investors and after talking to them today, they told me sometimes that bank just does that to newer investors. I guess I was just moving to fast for that relationship. They aren’t ready for the commitment! Lol

Anyway, I immediately called two other lenders who I have also heard great things about and one of them said that they would be in it for the long haul with me if I chose them (Very similar policies as other bank for LTV, number of loans, etc). I want to believe this bank, but how am I supposed to know they won't do the same thing and break my heart? Lol Also, is it best to have multiple lender relationships to ensure best results? Some of the investors say no way, stick with one and others are the complete opposite. What do YOU think?

[Russell Brazil]

We are in the middle of a financial crisis with renters oit of work. Banks are going to be tightening guidelines during this. Its just a reflection of the increased risk in the market right now. Dont take it personally, and make sure not to burn the bridge if you've had a good experience with them.