How Did You Cultivate The Relationship With Your BEST Lender?

[Mindy Jensen]

Reading @Brian Wilson's  recent post about a lender telling him "No", it got me thinking.

How do you create a relationship with a lender? I hear this advice frequently, and also have been known to suggest it from time to time. 

But how do you actually accomplish this?

How did YOU cultivate your relationship with your BEST lender?

[Austin Fruechting]

The best lender for me was a local portfolio lender where there would be an actual relationship to be built. They have more flexibility on what they can do and how they do it than the conventional lenders do. The terms may not be as good at the beginning, but the benefits outweighed loan-shopping. BUT over time as the relationship was built and I proved myself, the terms kept getting better and better and they do some very special stuff for me. Now no one can touch what they do for me.

I did this in the same way I cultivated relationships with all my BEST anyone... find a win-win and always follow through on your side...

At the beginning I talked to several portfolio lenders about what I was looking to do as a first property along with what my plan for the future looked like. I found out what they like to lend on, their general loan terms for what I'd be looking at, options for as improved/construction loans, cash out refinance terms/seasoning periods, etc etc. Then I choose the one I thought fit best, and have kept going with them.

The loan process is crazy smooth with no application process. The only "application" process I do is I just send them my tax returns when I get them completed each year so they have it on file. Whenever I get a property or portfolio under contract I just send it to them and say I'm buying this for $xx and want to do this type of loan. Then they set everything up and then I go sign closing documents. 

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It's the same way I've cultivated other relationships wether it be flooring guy, painter, HVAC, contractor, etc. At the beginning I got several bids, talked to them about how many properties I have and my future plans. Picked the best fit, and just go with them. As long as things continue well and they give me quality work and good deals, I give them all my business and pay promptly.