“Just write the check, we’ll cover you…”
January 3rd, 2008 by Grant in: Banking, Investing, Real Estate, Rental PropertyI called my banker yesterday after I started thinking about how I was going to finance another rental property. When I call this guy my banker, he IS the bank, as in, he OWNS the bank. A good guy to know, indeed!
One of the benefits to doing business with a small town bank is that you know the bank and they know you. There is no pre-approval as long as your logic is sound and the margin is wide. If you have the cash flow to support the investment, they’ll lend you the money.
So the conversation with the banker (Bruce) went like this:
Me: Hey Bruce, I’m looking at acquiring some more rental property, would you be interested in writing the loan?
Bruce: Absolutely, what are you looking at?
Me: Well, there is a property two blocks North of the one I already own that’s owned by a bank, and they are desperate to get out. It’s come down thirty grand in the last three months.
Bruce: How much money do you need?
Me: They are asking $59,900 but I think I can do better than that.
Bruce: Sounds good. Just write the check or whatever you need to do, give me a call and I’ll make sure the money is there to cover the deal.
Man do I love doing business with a small-town bank. You’d never have a conversation like that with Bank of America!
Tags: Finance | loans | mortgage | Real Estate
Leave comments below.
Subscribe to Comments
Loading ...
January 3rd, 2008 at 11:38 pm
Good for you Grant!
Keep us posted on your progress, this sounds really interesting.