How Bankable Wealth is Not Through Your Bank
Don’t Bank on Your Bank
Your bank should be your last option when purchasing your first investment real estate property.
Most people think of their bank as their only choice as a mortgage lender when they purchase their first investment real estate property; this is far from the truth.
Understand there are multiple types of financial institutions; review list below.
Types of Financial Institutions:
- Commercial Banks
- Investment Banks
- Insurance Companies
- Brokerages
- Investment Companies
- Trusts
- Management Investment Companies
- Non-Financial
- Credit Unions
- Shadow Banks
- Personal – Non-Family
- Family
Which Type of Lender Should You Use for Your First Investment Property?
I recommend you find an investment real estate lender who specializes in the world of investment real estate.
I always suggest you make your bank your last bank to use. Why?
If you are reading this blog investment real estate may not be in your financial portfolio, but you are giving investment real estate some thought. Each lender has their own set of rules, and many of the traditional mortgage lenders will lend you money for investment real estate. These conventional lenders have limits to how many investment real estate mortgages they will finance for you.
Remember if you are buying investment real estate you are in a small group of investors.
Double Down On Your Personal Banking Strategy
In my blogs, I will introduce value bricks in helping you build a strong financial foundation. These value recommendations are designed to have a long-term positive impact on your wealth accumulation portfolio.
If you are in a long-term relationship or marriage, I would like you to double down on your banking situation. In today’s households most partners are working; to double down create joint accounts at separate banking institutions; start building relationships through these banking institutions. Set up a chequing, savings and a primary credit card through one or both of the banks; ie. Visa with one banking institution and Mastercard with another. Most employers have direct deposit of your paycheques; recommend one partner’s paycheque go into one bank and the other partner’s paycheque get deposited in the other bank.
Do my wife, and I use this strategy; you bet, and we have for 15 years.
With both of your names on the chequing, savings and credit cards with each bank you are doubling down, and both of you are creating credit with both of these institutions.
Next Step at Your Bank
Do you need to ask your bank what is the number of investment real estate mortgages they are prepared to lend you?
Yes. And Why?
Going to your bank might be the easiest way for you to get a home mortgage however you might create conditions with your bank that limits you from getting more mortgages from your bank.
Remember investment real estate is a long-term financial strategy.
You can see why I would love you to double down for your banking needs.
Having two central banks gives you opportunities to learn about how each bank runs their operations, and you get to learn about how they handle their mortgages especially in the area of investment real estate mortgages.
Personal Mortgage
Getting a personal mortgage with your bank might work against you; don’t want to give up what might be your most accessible and easiest mortgage to acquire.
What’s the real investment challenge here for you?
Don’t let it be you.
About the author, W. Rick
Dynamic entrepreneur and sales management strategist; with over 20 years of experience in his field. Rick has achieved multimillion-dollar sales growth while providing award-winning sales leadership and coaching in highly competitive markets.
An active real estate investor since 2002, Rick has developed his purchasing strategies and processes specializing in vacation and recreational properties, single-family homes and condo rentals.
In 2005, Rick re-financed his first rental property to fund the purchase of more positive cash flowing rental properties.
Rick sits on the Board of Directors for several condominium associations and is an active President and Treasurer. Sitting on these boards has given him a wealth of experience and insight into working with property management companies.
Rick has partnered with several joint venture associates and is committed to creating a positive investing experience for his associates by finding the properties, developing the investment, securing the financing and executing a proven positive cash flow system.
Why should you choose Rick as your Online Vault to Investment Real Estate Success Advisor?
An outstanding mentor and coach, Rick will work with you to build your investment real estate business starting from the foundation. From guiding you through the market research and critical drivers, building your team of trades, realtors, and lenders to attracting the investment real estate properties right for your portfolio and the joint venture partners to help you grow.
Through direction and training, Rick will help you develop your investment real estate goals and be a catalyst for you to purchase your first investment real estate property so you can build a strong financial foundation unlocking sustainable wealth and a living legacy for you and many generations to come.
Thank you for taking the only asset that gives us so much through life, but we can never get back our time.
Please join Rick on living his mantra:
” Prosperity for all aspects of your life forever.” W. Rick Harris