Bank or Private Lender?

[Ron Fletcher]

I currently own several properties and getting ready the close on another this month. I have a great relationship with my bank. They do require 30% down on each deal and charge 5.25% interest. Upside is there is no issues getting approved. I've been with them for ten years. They don't even pull credit report anymore. Ultimately I would love lower down payments and lower interest to ramp up my business. Would private money be a better deal? And will credit get pulled for every transaction? I have excellent credit and want to minimize inquiries to keep it that way. Thoughts?

[Desmond Alexander]

I am not an expert but it seems like you have a nice deal with your bank. Besidesthe high down payment that is. I have read there are PML that don't requirea down payment but its at around 8%.

I would research a few PML and see what stipulations they carry. 

Good Luck

[Frank Y.]

With such a great relationship with the bank, why do you even consider PML? PML will charge you much higher rate.

[Melvin List]

@Ron Fletcher i agree that the relationship with you bank sounds solid

[Rick Pozos]

The bank is keeping you very conservative. With 30% down, you can have a big downturn in the market and rents can go down quite a bit and you will still be able to make your mortgage payment. Since you do have such a strong cashflow from your properties you should put all you can into savings for the next down payment. Put all the cash flow, plus all you can scrimp together to get that 30%.

OR if several plus 1 is plenty of deals for right now, focus on getting one of the properties paid off as quick as possible from your cash flow and all your "extra" money every month. Once you get one paid off, that will snowball for the next one and the next one.