Why use a local bank for a heloc?

[Amedeo Conta]

Im getting started investing in rentals. My wife and i plan to take out a heloc on our home that is completely paid off. We are planning on using the heloc money to build an appartment in oir basement and have a rental income there. Then also put a down payment on one or more rental properties that we can quickly rehab and generate rental income from. We are talking to banks now.

My question is what are the benefits of a local bank or credit union to a large bank like Bank or C.U. like of America or Navy Federal? Arent all banks rates based on "Prime"?

Also. Another question. is it ok to buy my first rental out of in a better market over 8 hrs away? Thank you.

[Michael Ablan]

@Amedeo Conta  - A short example

I went to several banks to get qualified for a 4 plex, but was denied by all of them because my self employment history was 1y5m.  My tax return was great the year prior, but the year before it was not very good.  I was denied because it didn't fit exactly into the criteria that the secondary market buys into.

I went to a small, local, portfolio bank, and was approved.  I was approved because they're keeping the loan (not selling to the secondary market) and the VP trusted me and what I was doing.  Most banks don't have this power.  The only ones that do, are the smaller credit unions, who write loans that they do not sell.