The Best Banks To Buy Real Estate With


If you want to win at the game of real
estate, then you’re going to have to figure out how the whole banking game works.
Because it can appear to be such a complicated mess. And frankly, some banks
are better than others. And so, today’s video is all about what are the best
banks that you should be leveraging for your personal and investment needs. And
how do you navigate the tricky waters. So, I’m joined here today by Brent. How
you doing Brent? -Doing well. -Dude, thank you for being here. -Thank you. -Brent is one
of my real estate partners. We buy homes together. Were involved on other
investments in projects. And he’s also a member of my mastermind. He and his wife
are amazing human beings and that’s been really great the last few years. Really
getting to know each other a lot deeper. And we’ve got something exciting
happening in like the next 24 to 72 hours. What’s going on? -So, I’ve got
another investment house. It’s going to finally close. -Right? -It’s a process every
time, isn’t it? -Yes. -And I was just I was talking to Dianna a couple
days ago. She says, “Oh, Kris. Sorry, that Brent has had to like walk on out a
couple of times during the retreat. The banks just keep asking for more
documents and then he’s got to go and get it and supply it.” -Yeah. -And I’m like,
“Well, great! I’m making a video about that. Might as well come on down to the office
and actually share the real-world experience of what goes down.” -Yep. -Now for
you, you’ve got a great job. -Yeah. -You’ve got great credit. -Yeah. -And yet,
would you… Do you consider the whole banking process? Like, would you classify
it as easy and fun? Or how would you actually like classify what it’s like to
work with banks and underwriting to like supply everything that they request? -Well,
this last one, the bank, the underwriter was just wanted a lot more detail. I mean,
I’ve had 20 years of documents that pulled up for the previous deals I’ve
done. This one asked for about another 5 or 10. Which if I’m out on travel, I
don’t have them with me. So… -It’s a little bit of a pain? -Bit of a pain.
-Yeah. I think one of the nights, you actually drove home to go gather some
stuff and got home super late. -That’s right. -But you were there back
in the morning which is awesome. Listen, you’ve always had a great even personality about the whole thing. The reality is there’s a lot of
people that get irate. Have you ever been frustrated sometimes that like what the
banks are really requesting and asking for? -Well, you know, this was about a
series of 5 thing. Okay, let’s get this next thing. I thought,
“Okay. What are they going to come up with now?” -They’re going to fund 80% of the loan.
We’re coming up with 20%. So, the bank wants to know at the end of the day, “Hey,
like are you credit worthy?” -Yes. And they have… All banks have something called
underwriting. So, when you meet with the loan officer originally, if they’re
really knowledgeable, they’ll request a whole bunch of documents. Things like
your wage income, pay stubs; they’re going to run your credit. They want to look at
your bank accounts. Make sure they know where money is. And there’s some
people like me that hate paperwork. So, it’s not my favorite thing to go track
all that stuff down. That’s typical. But then it goes to an underwriter. And this
is the person that says, “I actually represent the bank.” And now I have to
look at everyone’s unique circumstances. And I got to like dig in and ask
questions. And this is where they can ask for “Well now, give me this. Well now, give
me this. Well now, give me this. Well, what about this?” And what they’re really
looking for are holes of plot holes in the story. They’re looking for maybe the
seat. Or they’re looking for explanation for things that don’t make sense to them.
And bottom line is if we don’t play by the rules, we don’t get a loan. -That’s
right. This last one, was it kind of strange? After like, we’ve been buying
properties back to back to back this last year. -Yes. -Now, getting the third one,
why do you think they were asking for a whole lot more detail? -I have no idea. I
think it may be the personality of this underwriter just said, “I want this and
this and this.” -It’s weird. -They see a document. “Okay, this text is missing.” So
you have to go to the bank and have it create a special form that has that text
on it. -Yes. -And they’re happy. -And they want everything signed. Something’s
notarized. -Yeah. -You know, some of you might be
wondering, it’s like, “Is this how it is with all banks?” And this is the secret I
want you to understand because you’re wondering “There better banks than
others.” The reality is they’re more or less all the same. They kind of operate
all under the same kind of way being. Some are going to ask for way more detail
than others. But that’s just what banking looks like. And it can’t get irritating,
it can get frustrating. Brent’s really good at not allowing that
to really get under a skin which is super awesome. And I know there’s some
people that get so irritated. They get so angry about the way that it is. But if
you don’t play by the rules, you don’t get their money. And so, today’s video is
really more about understanding proper expectations. If someone (Brent) is
watching this video and they’re about to enter the loan process… And let’s just
say they sat down with the loan officer that was hungry for a loan officer’s
commission if the deal goes through. So, they kind of paint a picture of Easy
Street. “I’m going to ask for a couple of things. We’ll have this thing done in no
time. it’ll be great.” What expectation correction might you suggest based on
reality? -I think I’d want to know what’s the most
documents they could ask for? And going ahead if I’ll have those ready. -Yeah. So, it’s ready to sent off. In fact, in my case, I was going to travel a couple times when they
asked for them. But, okay how do you go get it? -Yes. -So, yeah. If I had to do it over
again, I would have put all those documents on a cloud drive where if I’m
travel, I can still get them, I can sign them, I can do everything. -Yeah. -Plus I’d
want the ability to sign documents on the fly. Rather than have to print them
out, scan them and send him off again. -You know, I have to tell you like there’s an app like site now that I love using. Because it’s like
I can take a picture. I can sign it on my phone. I can send it off. No printer, no
scanner. Right? It’s a lot more convenient. -Right. -How many times do you
think an underwriter can come back and keep asking for stuff though? -Well, this
kind of time, they came back about 6 or 7 times. -Which is a lot. Because I’m
telling you like… Requesting a new updated set of requests 6 or 7
times. That’s a lot. -That’s a way more than I expected. And if you can see
if you can survive that, then you can probably survive most of bank. -That’s
right. Yeah. -Guys, listen. This is a book that I wrote years ago. This is one
of my books. It’s all about how to navigate real estate successfully. In it,
I talk about everything you need to know about lending from A to Z. How to work
with a loan officer, how to pick the right loan officer. And I’m going to give
you just a tip right now. By the way, you can get this book for free. Just click
the link below and cover the shipping. And my team, technically my daughter
will physically put that in the mail and send it out to you. But let me share with
you I think the best advice from this book. It’s not about what the best Bank
is. I actually think that it comes down to the most experienced loan officer. And
what I mean by that is first of all understand that investment lending and
lending for a primary residence like your own house. Those are like 2
different fields of study. Right? One’s bought and one’s geology. So, don’t think that
investment lending and buying your primary residence is the same type of
lending. Because actually, you think they’re the same but they’re not. The
guidelines are different. The banks are different. Things are different. If you’re
doing investment loans because you’re a real estate investor, you should be
finding a loan officer who is currently closing a dozen deals a month. That means
they are a high-volume loan officer and they know how all the banks they work
with are changing. Also don’t work with the bank. You want to
with a loan officer which actually has loyalty to no specific bank and it can
actually work with several different banks. Why? Because they become familiar
with which banks have better programs than others. And if your situations
shifts a little bit, then they have additional options that a singular bank
may not have. So, really, you’re looking for someone that originates loans, works
with multiple banks; is doing at least a dozen a month. And if you have that then
you’re going to have someone knowledgeable enough that when the bank starts
squawking, they can shoot straight and say, “I’m telling you this bank is not
going to come through. We need to shop with the different bank. I don’t want you to
risk not getting the deal.” So, that’s something that’s important to me. I found
a long time ago is that you want to work with a loan officer that can broker out
to several banks. And one that is experienced enough based on doing enough
volume that they are relevant to today’s market. -Yes. -And that’s who you are
working with. Which is why we’re navigating some tricky waters and
working with some funny screwy underwriters. -Yeah. No, it’s just one or
more detail. -Yeah, exactly. Brent, anyone else that’s actually
considering partnering? Getting into real estate? Getting involved with what it is
we do here? What’s your experience been like? -My experience is
that you guys have the answers. If you need advice, you’ve got it. And a lot
of us, the mindset. And you guys have the mindset, the mindset training. -Well, I
appreciate that. Thank you very much for being here today, Brent. -Thank you. -And for the
rest of you guys, get your copy of this book for free. It’s in the link below.
Make sure you do subscribe. Ring the bell. And we’ll notify you every day when a
brand new video comes out. In fact, we got one coming up next right here that the
internet thinks you’re going to love.

5 comments

  • First again whats goin on kris? How much debt to equity do you think you currently have

  • That makes me Second! I love your tips Kris Krohn!

  • Does kris krohn pin comments?

  • Theodore McIntosh

    Banks are always looking to mitigate risk. Great video Kris! I think it’s great that you bring your partners in and telling us the best practices (such as having the docs on the cloud ready to send to the underwriter). Much appreciated!

  • This guy is impossible to deal with in real life people. He refused to respond or counter a full price offer with financing. Yet here he is preaching leveraging the banks…

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