How to Get a Real Estate Loan - Five Tips For Getting Approved!

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I remember going from bank to bank and

hearing the same depressing sentiment

over and over sorry but we're not going

to be able to give you a loan look for a

budding real-estate investor like myself

then these words were painful but

they're so common and without financing

it's really tough to build a real estate

empire to get that financial freedom so

I had a choice I could give up and

assume I was just too young dumb and

poor to get a loan or I could figure it

out so early on in my real estate career

actually got a job at a bank giving

loans and I learned how a lender decides

to approve or reject your loan request

and as I learned how the process worked

and what lenders were looking for

everything became easier now whether I'm

pursuing a bank loan or a hard money

loan or a private money loan or some

other real estate loan I rarely have a

problem getting financing because look

it's not rocket science I just needed to

ask myself five simple questions and get

a yes well my name is Brandon Turner

author of the book on rental property

investing and co-host of the

BiggerPockets podcast and today I'm

going to reveal those five questions

that you should ask yourself before

applying for a loan if you can answer

yes to these five questions you'll never

have a problem getting a yes from a

lender again and hey if you like this

video as I'm going through it be sure to

click that little thumbs up button below

the video let the internet world know

this is valuable alright let's get to

the five questions number one do you

have a deal look if you don't have a

good deal no one's gonna want to make a

bet on you so make it your goal to

understand how to find and identify

great deals the better deal you have the

easier chance you'll get it yes if you

want to learn more about how to find

great deals be sure to attend one of the

weekly BiggerPockets live webinars where

we look for real-life deals together

every week and then we run the numbers

to determine just how much the property

is worth sign for the next one

BiggerPockets com sighs webinar moving

on the question number two is this a

property the bank or the lender will

lend on look different lenders have

different types of properties they lend

on some only do single-family some new

multi some only owner-occupied some only

investments right some like fixers some

don't you get the idea so be sure the

kind of bank you're going after is the

kind of mate that will approve your kind

of deal now are you a solid bet number


you have the experience to justify your

plan look if you're brand-new drills

that have no income no experience no

credit why would a lender want to make a

bet on you

a banker's job is to make sure that

every investment they make every bet has

a chance of getting paid back if you

find you lack in one of these categories

you might need to find a way to make

yourself more of a sure bet this is when

a partner or a financial backer can come

in really handy yeah you know you might

to give away 50% of the deal right but

50% of a great deal is better than 100%

of nothing all right number four do you

meet the requirements a lot of people

think that loan approval is based on

some feeling the lender has but it's

actually much more analytical than that

most lenders especially official banks

have a set of requirements that need to

be met if you meet them all you're gonna

get approved if not you'll get denied

it's not like a mystery it's more like a

combination safe right like high school

locker the good news is you can learn

the combination by simply asking

they'll have requirements for

debt-to-income credit score

loan-to-value proper location and more

so get to know your lender find out what

they want and give it to them for more

on that be sure to download the free

ebook that I wrote you can get at bigger

pockets complex for bank financing

totally free it's called the secrets to

unlocking bank financing and in it I

walk through the 12 key metrics that you

got to understand and meet in order to

get to yes all right number five are you

professional lenders are busy they're

often collecting paperwork and

processing loans for a dozen different

people at the same time and it's human

nature to want to work on the easiest

thing so if you bring in an old shoebox

of papers and drop them off their desk

and say get to work you know come on if

you walk in there covered in Dorito dust

or they gonna want to spend time working

with you wasting their time so show them

you're professional how and how easy

you're gonna be to work with by you know

going overboard I like to do like you

know give a copy of a PDF report that I

generate from the BiggerPockets

investment calculators I also include

like a digital copy of every document

and I put all the physical ones in this

nice bound plastic cover professional

folder look getting a loan is not

impossible especially when you

understand the process so before

applying for your loan

ask yourself the five questions in this

video and make sure you can answer yes

to each if you liked this video and want

to tell the Internet it's got some value

then click that little thumbs up button

for me

help us reach more people and feel free

to ask questions in the comments below

the video and lastly be sure to

subscribe to our YouTube channel to get

notified of more videos just like this

one for BiggerPockets calm my name is

Brandon Turner signing off