"You haven't been a landlord long enough"

[Nathan Emmert]

How do you talk through that "issue" with lenders? I found a local credit union that would fund my first property and things went great. I went back about 2 months later to get funding on a 2nd property I found and apparently they got cold feet as I was "new".

I showed them my resume... running Government programs up to $50,000,000... team sizes of 120 engineers... full profit and loss responsibility... 3 college degrees including an MBA... but somehow they believe being a landlord on a property that is generated rents in excess of 4 times the P&I is going to be more challenging?

Have you guys found a good way around this issue? I have a meeting with another Credit Union tomorrow. At least this one is meeting me face to face. Unfortunately it's with their business unit which means the rates won't be as good but I figure I can swallow higher rates for a while until conventional opens up to me.[b]

Help me with your wisdom and experience! Thanks!

[Bryan Hancock]

I second the idea that credit unions may be the problem. Have you tried small banks instead? NCUA governs the lending practices for credit unions so there may be an issue from that angle. Hopefully some bankers on the board can comment.

You may also check out Lendio.com. They generally have relationships with more aggressive banks and can get your profile set up correctly to make you more attractive to lend money to. I have been working on our scorecard value and it has increased from 68.5% to 96.2% in 3 years. It takes time, but it is worth the effort. We now have several lenders chasing us in addition to equity chasing us via our fund.

There are a bunch of non-intuitive measurements that banks care about. Among them are:

-Credit Score
-Derogatory Items
-Inquiries
-Credit Maturity
-Credit Diversity
-Credit Report Aliases, Addresses, Employment Accuracy
-D&B Score
-Experian Business Score
-Equifax Business Score
-Revenue Documentation
-Assets and Liabilities / Net Worth
-Debt Coverage Ratio
-Revolving Debt Ratio
-Time In Business
-Type Of Business (Real Estate is a red flag for many banks...you need to find the right one)
-Secretary of State Validation
-Phone/Voicemail Verification
-Address/Phone Directory Verification
-Website, Email
-Bank Theatrics (How you perform on the phone)

Are you looking for a specific type of financing or a bank that is flexible and will loan on different types of projects?