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.