Like in any other industry, a successful real estate investor is only as good as their network of well-versed, experienced professionals, and that begins with the relationship they develop with their lender. Having a strong relationship with your lender that’s built on mutual understanding and trust can be vital to the success of your investment business. Not only should your lender understand your real estate goals, but they should also be a source of advice to help guide you toward that finish line.
A strong, positive rapport is critical; after all, your lender provides you with access to capital! But how can an investor expect to grow together with their lender and see the fruits of their partnership reflected in their portfolio?
Start small. If you’re confident that real estate investment is the next step you want to take in your professional life, begin meeting with local lenders and see who you click with most. You have short-term and long-term goals, and you want to find a lender who understands both and can help get you from point A to point B. By partnering with a lender in the early stages of your investing career, you can nurture a relationship that could payoff down the line. After all, who is going to know your portfolio inside-out as well as you do?
Most – if not all – lenders are looking to develop personal relationships with investors, so it really is a two-way street for keeping the lines of communication open. One way of developing the trust in your professional relationship is by being open about the bad as often as you are about the good. If unforeseen challenges come up in a project, it’s better to be upfront with your lender about what the challenge may be and work toward putting a plan in place that works for both parties. This not only shows that you can be objective and pragmatic about your real estate business, but that you can also be trusted to not hide pertinent information that can change the trajectory of a project’s progress – or your loan paid back on time.
This goes hand-in-hand with open communication. The more honest you are about your finances, your goals, and your long-term plans, the better chance you have of hitting it off with a lender who understands your vision and is willing to work with you to make it happen. This, in turn, helps manage both parties’ expectations.
You probably know other investors who are looking for their own lender to fund an upcoming real estate project. If you are happy with your investor-lender relationship, the work the lender has put in, and your plans for your investment business, make some introductions. Nothing says ‘thank you’ more than bringing someone more potential business.
If you are new to real estate investing – or haven’t quite dipped your feet into it yet – now is the time to explore why it’s important to develop a relationship with your lender. A relationship that can be hard won but easily lost, an investor-lender relationship is one that can make or break your success as a real estate investor. Doing your due diligence to find a reputable lender in the real estate industry is the first step to creating a symbiotic relationship both parties can benefit from. If you are ready to discuss your lending needs, contact Temple View today.