Small bank advice

Hello all,

I wanted to run this by the forum and see what your opinions/experiences are with small, local banks. Tony and Scott over at the CRE forum always stress the importance of these community banks and developing good relationships with them.

I’ve been looking around for land/home financing and found a local bank that is willing to work with me. I’ve met and talked with one VP and he is very hard to get up with and communicate with at times. He can give me ok terms on a loan - 80% of purchase + fix up which means I need 15% down on this deal.

The realtor that told me to check with this local bank actually gave me a different VP to contact but I went with the closer bank to my residence. This other VP has given much better terms (loaned % of tax value) to other investors she has worked with. So my dilema is do I contact this VP and see what he is willing to do for me? Do I risk messing up my potential loan with the first VP I contacted and then having neither willing to work with me?

Thanks for any advice.


I would contact the other VP and see what they say about this. I assume it is the same bank just different VP’s? Then maybe go back to the first VP and tell him you heard the other one is offering better terms so can he match it? But yes, having a good relationship with a small local bank is a big key to one’s success, in my humble opinion.

Good investing,


Thanks for the advice Barry. I actually contacted the other VP yesterday and his terms were not as good at the first VPs. He said he could do 80% of purchase price and is having to stick very closely to FDIC guidelines on investment properties right now. He has been able to loan on tax value in the past but not now.

I will maintain my relationship with them and that bank for future deals. I will probably need to go with a hard money loan on this first deal but that is better than no loan or deal at all!



Post Edited (04-14-11 21:44)