Local Banks - Dallas, TX

[Derek B. Williams]

Hey Guys,

I am looking to move my business from Wells Fargo to a local bank to begin developing a relationship.  Do you have any favorite small banks in Dallas, TX?

Derek

[Andrew Postell]

@Derek B. Williams ok, no problem.  Knowing your strategy certainly helps.

1. With the BRRR strategy there will be lots of lenders that don't need a bank account with them to help you with this strategy. There will also be lenders who aren't even banks, meaning, you don't even have an option to open an account with them, that can help you with this strategy. For most of these types of loans, the equity position and your credit profile is the main deciding factor. I can't speak for every bank here but I cannot think of any that would lend you a better mortgage with bank accounts with them. These products are not normally based on holdings with the institution.
2. Now, with a PERSONAL line of credit, this could absolutely be based on your holdings with the bank itself.  Some banks won't even tell you that they have these products unless you have a certain asset amount with them.  So this product might be completely different than a mortgage. Admittedly, this is a harder product to find these days than in years past.  Most banks don't even offer this anymore.  So ask if it's an option, and what are the qualifications, before opening any accounts. 

What will sound strange is that a bank that you do have accounts with might have a worse mortgage than one you don't have accounts with.  Mortgages are underwritten differently than personal lines of credit.  And it might be possible that the bank with the best mortgage, might not even offer personal lines of credit.  So the two products are not mutually exclusive to each other.

When interviewing your lender for the mortgage, here's some good questions to ask:

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
2. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
3. What is my minimum down payment required? (not so important but if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
4. Can I change title to my LLC?
5. Do you sell your mortgages?
6. Can you explain to me what your reserve requirements are?

If a lender can answer these questions, without having to go ask someone else for the answers, then you are with a good lender for investment properties.

When asking about a personal line of credit, you'll want to know how long it's open for, what the floor and ceiling is for their adjustable rate, and how quickly you can receive your money.

*WHEW*  I hope this wasn't too much information but feel free to ask more questions if needed.  Thanks!