Portfolio lender requires Class A contractor???

[David Quan]

Going to doing BRRRR investing.

I spoke with a local bank because I’ve read about portfolio lenders are not subject to the 10 mortgage max, cheaper than hard money, and want to establish a relationship for long term.

They said that they require a Class A contractor to rehab the properties.

Is this always true or can it be negotiated if we do a few deals first?

[Andrew Postell]

@David Quan portfolio lending is called that because it comes from the banks OWN portfolio of money.  Their money = their rules.  Every lender will lend it's portfolio money slightly different....and sometimes drastically different.  So while that bank might have that rule another lender may not.  Since you are looking locally I would suggest two things:

1. Post in the Bigger Pockets STATE forum that you are looking in. There are usually some good, local investors that monitor those forums. Maybe they already have a suggestion or recommendation for you? Certainly try there.
2. Visit your local REI groups. There are many groups that meet across the country. Some post here on the Bigger Pockets Marketplace. Many post on meetup.com. Networking is always a great practice and you never know who you might meet there and what good information they have to share. Would certainly recommend visiting if one is close to you.

Keep in mind that a small lender STILL may not be able to close in time for some deals.  Hard Money is there when we have to close quickly.  Feel free to ask anything else if you need. Thanks!