Are banking relationships important? or does it mean you are over leveraged

[Dan Williams]

Hello All,

Background 

- I own 13 SFH all with conventional mortgages.

- Currently, our LTV across all properties is 40%.

   - No experience with portfolio loans or commercial lending, educational awareness from Podcasts and Books only.

Description

In many podcasts I've heard establishing a relationship with a Bank or Lender is critical when scaling.  I do not understand why having one with a Bank or Lender is important.  To me, Lending is a business transaction and if you have the capital, business processes, and accounting to show a Lender you are worthy of obtaining a loan isn't that what matters?  It just seems like any Lender would be willing to finance a deal if the deal is good and you have adequate capital.  One of the big reasons I can see a relationship with a Lender being more critical is if you are leveraged to the hilt and it's risky to lend you money.  While being leveraged to the max may speed up growth; it seems like poor business practice.

My question is:

. - Does my Lending relationship mostly matter if my LTV is risky?

- Wouldn't most Lenders want your business if you have a higher LTV like 40-45% and adequate reserve capital? Thus less importance on Lending relationships?

Thanks in advance,

Dan