A good lender is worth a thousand not good lenders

[AJ Wong]

Whether you are a real estate professional, investor or hobbyist, the value of a good lender can not be overstated. I've been in or around real estate since 2004, when I began as so many other naive, greedy and short sighted mortgage brokers, err bankers. It's not an eternity, but it's long enough to have seen several cycles and to know the worth of a good mortgage guy (or gal) and the power of powerful lending relationships. 

In the early 2000's just about anybody could do a mortgage for you and just about anybody did. The cast and characters I worked amongst during that unforgettable and regrettable episode from 2004-2010 still gives me goose bumps...as much for the hilarious and entertaining personalities (a few of whom I still work with and speak too regularly) but equally for the remarkably unqualified experience most of us stepped onto the field with. 

The results of loose and ridiculous lending standards and associated employment standards are well documented and to its credit the NMLS and associated regulation requiring financial capacity and licensure of those in the industry has been highly effective and improved the quality and professional standard of mortgage brokers. 

With changing markets and tighter lending requirements, particularly in the current rising rate environment, the importance of a quality lender that can work through and with guidelines as well as with access to specific product offerings is critical to a professional's, investor's or enthusiast's success. 

As rates rise and economic conditions (especially related to housing) become more uncertain, creativity and certainty in regards to both residential and commercial financing is critical to competitive offerings and adaptive solutions of successful real estate transactions. 

For example it is common for investors to utilize 1031 Exchanges for the deferment of taxes into reinvestments. As many sellers look to take advantage of elevated property and asset valuations, likewise the margins and returns of many replacement properties increasingly offers diminishing returns. One possible option is the deleveraging or 're-leveraging' of the owned asset. By borrowing at fair or favorable rates on an income producing property, the client can likely reinvest the proceeds into the new asset without the financial and transactional costs of multiple sales or pressure of finding an often inferior 'like' property. 

Financing options and expertise are even more essential in deals that might not otherwise work if not for an obscure detail, product or perspective. 

As your business or portfolio grow, the return on investment of a good lender rises exponentially. Not only will there be deals that likely would not have happened without their expertise and relationship but also the experience and results of yourself and clients will have improved through the overall energetic and financial return of the transaction.

Although real estate is generally thought of as static, even over the very long term, investments and markets are quite dynamic and a good lender friend in financing is worth their weight in equity by ensuring that investment is consistently being utilized purposefully and profitably. 

A few products that have been very useful lately are:

- 10% down 1-4 unit investment property loan. Allows use of proposed long term rent schedule from appraisal for help qualifying. 

- Commercial 15-20% down on high quality income producing properties. 

- Commercial up to 75-85% LTV Cash out refi.

- Interest only seller carry balloons

- Residential & Commercial Rehab loans allow to use proposed AVM to establish LTV

These are just a few examples!