Episode description
Episode description
On this episode of REI Mastermind Network, we dive into the world of credit unions and how they can benefit real estate investors and small business owners. Our guest, Mark Ritter, shares valuable insights about how credit unions have control over their money and portfolio, offering competitive rates and friendly terms. He emphasizes that credit unions are not-for-profit financial organizations that require membership, and highlights the advantages of building a relationship with these institutions. Mark explains that credit unions prioritize expanding their membership and understanding their borrowers' financial responsibility, making them a great option for those starting out in real estate. Additionally, he discusses the importance of vetting credit unions and finding the right fit for individual needs. Mark also sheds light on the lending process, emphasizing the importance of transparency and providing necessary information such as tax returns and financial statements. He cautions against quick and easy loans, urging borrowers to take the time to find a lender that aligns with their goals and values. Lastly, Mark shares his personal experience working with credit unions and talks about the pride he takes in helping small lenders grow their portfolios. Don't miss this episode full of valuable insights and advice on navigating the world of credit unions for real estate financing.Connect with Mark Ritter at https://markritter.com/
Topics Covered:
1. Introduction to Credit Unions and their control over money and portfolio- Credit unions' ability to assess property value after rehab and stabilization- Different lending criteria of credit unions based on cost, rehab, and increased value- Offer acquisition loans and cash out values once properties are stabilized
2. Importance of Soft Money Lenders in increasing property value before working with credit unions- Consideration of current market value of properties by credit unions- Regulation and role of credit unions as financial institutions- Loan process requiring quantitative and qualitative information
3. Understanding Borrower's goals and plans as a focus for credit unions- Range of financial services offered by credit unions, not just loans- Friendly terms and no prepayment penalties for credit union loans- Flexibility in decision-making due to lending money from local deposits
4. Role and Structure of Credit Unions- Election and unpaid nature of credit union board of directors- Involvement in the community through running for the board of directors- Accessibility and community involvement of credit union management
5. Benefits of Credit Unions for Real Estate Investors and Small Business Owners- Desire for better relationships with financial institutions and being known by those in charge- Credit unions as a preferred option and their non-profit, cooperative nature- Overview of credit union services such as auto loans, ATMs, and drive-throughs
6. Overlooking credit unions as a financing source for real estate investors- Highlighting competitive rates, friendly terms, and conversational loan processes- Membership requirement for credit unions and their expansion beyond limited groups- Credit unions as a good option for starting out in the real estate business
7. Better understanding and approval of credit union loans for members- Prioritization of membership expansion by credit unions- Vetting credit unions through website research for business and lending services- Asking about relationships and fit with credit...