Loan for a Turnkey company

[Joel S.]

Hi,

I am interested in investing with a reputable turnkey company. Should I go through their recommended lender or a lender of my own? What are the advantages and disadvantages? Thanks for your help!

Joel

[Ali Boone]

The turnkey companies often have a preferred lender who is familiar with and works with a lot of real estate investors, that is why they are recommended. There are fewer banks/lenders out there than you think who are familiar with these types of transactions, so sometimes finding the ones who are familiar can be hard. This is why turnkeys try to help you out and point you in the direction of one. Whether you use that one or not has no effect or bearing on the turnkey company, they don't make commissions or anything like that by you using that one. They are just trying to help you.

With that said, definitely check out the one they recommend as well as others you may know of. Shop for the best rates, but don't give up customer service for a couple quarter of % points either. Another reason they recommend someone...they try to make sure you get hooked up with someone who will actually communicate easily with you and get the job done. Part of the turnkey value-add...you get connected to good resources.

Shop around for sure, but anytime you are talking to a potential lender, MAKE SURE they work with investors often. Otherwise you'll be in a heap of frustration. No BoA or Wells Fargos or anyone.