Let me start off by saying that I’ve had my fair share of failures when it comes to obtaining bank financing—I get turned down every year for a loan. But, I’ve also had many successes over the years and have obtained many mortgages in my own name (at one time 30), as well as for numerous loans for LLCs, commercial properties, etc.
Currently, I’m working with a money broker to get me bank financing for delinquent mortgages, which by the way are probably the toughest thing to finance. So far I haven’t given up, and we’re getting closer. Although there have been many articles written on Bigger Pockets about this topic, such as “10 Ways To Work With Banks To Get The Financing You Need,” I was inspired recently when one of my employees had been repeatedly turned down for financing, and I see all the pain he’s going through, as well as some of the messes he’s ended up putting himself into. At the same time all of this is going on, I have a real good friend who never seems to have any problems getting bank financing.
So what’s the difference?
Assuming that both of these individuals have taken care of the technical side and both have good credit, the difference is that one has done his homework and the other has not. As an analogy, both of these men walk into the same Mortgage Store. My employee tells the store what he wants to buy. My friend, on the other hand, knows what the store is selling and to whom the store is selling it to, and he comes prepared to buy it.
Some of the things my friend does, which make all the difference for him, are actually pretty simple.
Networking and Building Relationships
My friend chooses to surround …read more