Small Local Banks

Small Local Banks are fast becoming the weapon of choice where financing real estate investment property is concerned.

Due in part to the fact that many local banks hold their loans "in-house" and do not sell it on the secondary market, they are restricted by the standards that the secondary market imposes.  This translates into added flexibility where lending to you on your real estate deals is concerned.

This funding source, if engineered properly, can eclipse private money in ease of access but at the sacrifice of flexibility.

Because of the value, we are always working to develop relationships with local banks that we can point those on The Wholesale Hot List to.

Pros:
Not bound by the regulations of the conventional market.  Ability to leverage small amounts of cash into large investment loans when done properly.  Larger amounts of funds can be made available than with other sources with the exception of conventional financing.

Cons:
Relationship based.  Like private money, relationships with small local banks require time invested and a track record established before you can reap the full benefits of a robust local banking relationship.  Sometimes it take an intense search to find the right local bank.  Credit will be factor when lending decisions are made.

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