There are definitely pros and cons to each so I figured I would just lay out a few benefits and personal thoughts: Small banks/brokerages:Pros:- Some regional knowledge of the market- Possibility of more creative lending guidelines with bank specific programs- Sometimes they have competitive rates for their areaCons: - weak balance sheet (more strict on some guidelines, no wiggle room, inability to be flexible or grant exceptions because they cannot afford to hold less than perfect loans)- Can't scale with clients to different markets- Usually limits exposure to individual investors (they don't want one investor to be too big of a portion of their balance sheet)- Lack of experience with multiple solutions (tend to have 2 or 3 loan products they sell and are too niche to provide tailored solutions)Large banks/brokerages:Pros:- Large compliance departments that understand individual market guidelines (typically each state has specific lending guidelines that augment the national baseline)- Ability to scale into multiple markets with same lender (licensed in many states)- Impossible for individual investors to "outgrow" a large bank's balance sheet (not concerned with one investor's concentration)- More lending solutions available for different scenarios- Often comparable or better rates given the game is volume basedCons:- Can be more difficult to get fast responses if the bank/brokerage does not have good follow up systems in place (or if the underwriting/processing staff gets overwhelmed)- Bad large banks can feel less like a relationship and more like a cog in a factory (less personal)Overall, I have worked from both and worked with both as a loan officer, branch manager, and as an investor/client myself. 

Fortunately for Hunter lenders will hopefully stop this madness before he has an opportunity to execute on this transaction.

@Gaurav Vedi this is very thorough.Did you also evaluate the increased cost of compliance, admin, and time you will need to invest in executing setting this up and maintaining it? 

Having over 10 years of experience in the electrical field, and correcting numerous poorly executed electrical installations, one of the biggest value adds that I have is this experience.

Here's my situation:- Experience Level: I’m a new investor with a moderate (Still learning) understanding of the BRRRR strategy but haven’t executed it yet.- Business Setup: I’m setting up a new LLC specifically for this venture, which means the LLC will have no prior credit history or track record.- Investment Location: I plan to invest remotely in Birmingham, AL.

Forget about trying to execute a rehab that will cost over 3 times the purchase price. 

ANd actually the referral was to one of top executives on the new build team..

Wondering if anyone ever ended up executing on this (specifically rebating a portion or total amount of owed buyside commission back to yourself as a buyer rebate at the closing table to cover closing costs). 

Feel free to inquire about their staff qualifications if it's a larger organization.2.

I wouldn't unless i could see a fully executed purchase and sale agreement, proof of funds, and an underwriting approval.