Posted by Charles Clark on March 06, 2003 at 09:00:57:
Actually what Frank probably means is that you do your day to day business with the local bank, meet the VP there, so you have a back up, and do your major deposits with your friend. Just be sure to call him from time to time to keep the relationship going.
I do loans for people all over the country, and sometimes when I start talking with them, they are nervous like you are, but in my case, everything is FedEx and local signing, so modern communications is changing the way the world works, but the bottom line is that most things are a “people to people” business, just now it is over the phone/cell phone, and before it was shaking hands.
Good luck in your venture.
Charles
First Since Ed Garcia moderates this board, it’s been awhile since we’ve talked last, but thanks again for the help you have been and for your Lenders Workshop last June, it was great.
I’m in the process of purchasing a Mobile Home park and although the seller will finance the deal(about $500K - my $106k from a 1031), I want to still be able to go in with having financing of my own with a lower price, because the seller hasn’t been too flexable during the negotiations(even though it’s still a deal at his asking price).
I know a banker who recently moved from a larger bank to a 1 branch bank. He is V.P. of Business Banking(I know those titles don’t always mean a lot when it comes to banking), but…I called him and he said his new bank is more aggressive then his old one, and didn’t flinch when I told him about the Mobile Home park I’m looking at. He did however say that if they can put a deal together for me, I would need to have a deposit relationship with their bank. Therein lies the problem…this one branch bank(which recently had a great write-up in the business section of the paper) is about 40 minutes away from my house and about 1 hour from the mobile home park. So…is there a way to have a deposit relationship when distance is a factor? One thing I’m thinking about doing is letting him know I can put $25K (starting) into an account with their bank to see what that will do.
Posted by Frank Chin on March 06, 2003 at 08:04:25:
Hi Brian:
My dad did all his banking at Citibank for over 50 years till they closed the local branch. Since he can’t drive, the next nearest branch is over 40 minutes away walking.
Because he had his retirement accounts, annuities, CD’s, and everything else there, it was not feasible to close everything up immediately. He had to keep his old checking account because of numerouse automatic deposits, payments made from that account inclusing dividends. BUT he had rentals, and need to do deposits and withdrawals easily.
So he opened a checking account at a small local bank two blocks walking distance away. Then he would transfer funds electronically between this bank and his old bank, Citibank.
If this is the only stumbling block, just use a local bank to make deposits, withdrawals for your MHP. Then transfer funds between banks electronically with the other bank 40 minutes away.