How to Find a Bank to Refinance Your Properties

If you are thinking of buying a piece of property, you must look for a bank that offers you a good rate for long-term financing. As a matter of fact, you must secure long-term, low-leveraged debt to make real estate investing work for you.

Credit:Ensure that you do not have a bad credit record. If your credit isn’t great, it might be a good idea to partner up with someone who has a good credit record. You will need to get a job or a partner to ensure that you have good credit.
In addition, you need to focus on getting your accounting in order, especially if you are the owner of some other properties too. Jumbled up accounts can be troublesome.
Checklist:Below are the key items to look for when seeking a lender before you finalize the loan:

• Interest Rate
• Loan to Value
• Amortization Rate
• Term
• Prepayment Penalty
• Seasoning Period (for Refinances)

Ways to Find a Bank:It is really important that you find the right bank. Here are a few essential tips to find the perfect bank:
You must look for banks who are willing to lend to investors. Some of the best places to ask for referrals are:

• Your local REIA (Real Estate Investor's Association)
• Bigger Pockets Meetup
• Other local real estate meetups you can find on Facebook or Meetup.com

Ask around and see what people have to say about the banks. Ask them about their experience, if they charge anything extra, any hidden charges, and how cooperative they are. Generally speaking, if they lend to other investors doing what you are, they will (likely) lend to you too.

For more, please subscribe to our YouTube channel.