Funding From A Bank

[Gary Bonds]

Any best practices when attempting to secure business funding from a bank, in the form of a loan or credit? When they ask the nature of my business, do I advise that I'm a real estate investor? Being that my business is brand new, do I project business profit when they ask for the annual business income?

[Chris Seveney]

Quote from @Gary Bonds:

Any best practices when attempting to secure business funding from a bank, in the form of a loan or credit? When they ask the nature of my business, do I advise that I'm a real estate investor? Being that my business is brand new, do I project business profit when they ask for the annual business income?

 Contrary to what companies may tell you that charge you $ to get "bank funding". Real estate investors do not get lines of credit from a bank. In order to get a line you would need 2 years of operations, and have an operating company - like a property manager or a construction company. Owning real estate is not considerd an operating company thus a bank will not lend or give a line of credit in that fashion.

[Michael Smythe]

@Gary Bonds the only way you'll bet a business loan as a newbie, is by cosigning for your business.

You'd be better off getting a business credit card you personally cosign for to start establishing business credit.

[Amir Khan]

Quote from @Gary Bonds:

Any best practices when attempting to secure business funding from a bank, in the form of a loan or credit? When they ask the nature of my business, do I advise that I'm a real estate investor? Being that my business is brand new, do I project business profit when they ask for the annual business income?

What is the age of your business LLC?

[Jeff S.]

@Gary Bonds owning a few rentals is not a business at least according to my accountant, Best to attempt to qualify using your personal income. What makes it tough in the beginning is your rental income is not established so you need to be able to handle the debt not using rental income. 

[Farley Youman]

Banks will take too long for most investor properties- especially in cities like Atlanta where the property will sell fast (and the seller wants their money fast).  I have investors that I set up loans with private money that only use this method because of the speed. Finally, we do not care about your tax returns, etc.- since these loans are primarily based off of the asset as collateral.

[Greg Kurzner]

I would look at private money lenders who can consider giving your a line of credit based on a multiple of the cash you have. Experience will dictate the amount of any LOC and rate and term. Often you can get better terms by partnering up with someone with demonstrated experience. Credit score does matter but they will lend on a per property basis out of your available LOC once they approve a line...again mostly based on your available cash and credit score.

[Griffin Malcolm]

Give Key Bank a shot. I've only done two projects thus far, but the branch manager seemed confident I would be approved for at least 90k line of credit. Should know soon for sure. We still had the meeting and filled all the paperwork out though so it's worth a shot