Don't overlook the national banks

[Mackal Smith]

I hear it all the time. "You really need to use smaller banks because they can provide portfolio loans they keep in house and can be more creative". I think that is probably true for the most part, but for an investor that has a little money, I have been amazed a what a national bank can bring to bear to help me solve problems.

Long story short - CPA tells me if I keep cashing in stock to buy properties (even long term gain stocks) it is going to push me into the highest tax bracket. Crap! Do I quit investing? Do I get a partner? No, I go talk to small banks about a line of credit. Good news! I can get one using a property I have paid off. That's great... but I don't stop there. It just so happens that I have been using one of the national banks for a couple of commercial loans. I call up that banker and explain the problem and even though he can't really help, he introduces me to the VP of Private Banking Relationship Management. "What the heck is that", I wonder? 2 hours later and I walk out of there with a $200,000 line of credit! Holy cow! This big huge slow moving national bank actually moved mountains to help me. Don't overlook what a big, slow moving, national bank can bring to bear, it could be the biggest mistake you make!!