Can't be good when banker laughs at your Income - Posted by Rosie_FL

Posted by Doug Pretorius on March 22, 2000 at 13:35:39:

Ohh, what do bankers know anyway? My theory is the people that are too dumb to rob a bank go to work for one.

Remember not to look at properties, but look for flexible sellers! I know all about the wasting of time looking at properties without first learning the motivation of the seller, not to mention the frustration.

I know it’s strange, because when you think about buying real estate, the first thing you think of is what properties are around. Then of course this is only reenforced by an agent asking what kind you’re looking for and how much money you have. But if you want to do that you better be prepared to waste many hours looking at useless properties and arguing with stubborn sellers. If you value your time (and sanity) just follow the advice everyone here offers on finding those motivated sellers!

Can’t be good when banker laughs at your Income - Posted by Rosie_FL

Posted by Rosie_FL on March 22, 2000 at 09:59:00:

A story of starting a relationship with the bank.

I wanted to show my financials to bankers, brokers etc to open discussions for credit lines and deal making. So I wrote up my personal situation following the Balance and Income statement format from the Cash Flow game.

When I showed it to the loan officer at NationsBanc, she laughed. (She knows me a little as a customer so she could get away with it, although I failed to see the humor.)

The loan officer told me a scenario in which one deal, in the price of houses I’m looking at, would bring up my Income to look presentable. She liked the statement, but one thing she asked about was how my soon-to-be-corporation was going to do business. I KNEW about this - a Business Plan! That was what she was asking for. I had a vision of Terry and Ed looking disappointingly at me. I didn’t have one prepared.

Guess what she’ll get next week? I guess it could have been worse, at least she heard me out instead of throwing me out!


Reminded me of a funny story… - Posted by Ben (NJ)

Posted by Ben (NJ) on March 22, 2000 at 16:16:55:

Early in his RE career my uncle was turned down for a loan by a bank that told him “he was too small”, years (and millions of dollars) later the same bank came calling for his business and he told them, (you guessed
it) “Sorry, now YOUR too small!” I hope very soon YOU will be the one laughing at your banker!

Go outside of the box! - Posted by Matthew Chan

Posted by Matthew Chan on March 22, 2000 at 14:33:04:

While I am not opposed to developing a relationship with a bank and trying to get lines of credit, perks, etc., you should know that you will expend a lot of energy and quickly hit a limit no matter how much you embellish and improve your business plan. I have done so myself to some degree of success but the banks still “keep you small”. You have to make yourself get “bigger” in other ways.

The primary reason is they look at where you came FROM more than where you are trying to go. They are always focused on historical information, not the returns and upside. So, if you HISTORICALLY, had lower income and lower assets, guess what? That is what they assume you will be. They won’t give you too much more.

I had to learn through a couple wacks to my head that there is money available but not in a form or packaging you may expect. There are also people, investors, and funding companies that will fund based on the DEAL, not the individual. (If you don’t have money, you better have integrity…)

If you are limited by what the bank can do, it is time to look beyond the bank.