Earlier this month, Tracey sat down with Dwayne Falk, president and CEO of Table Rock Community Bank (TRCB), to talk about the importance of having a lender as part of your real estate investment power team. We are going to touch on two of the topics they discussed, and you can check out the video at the end of this page to watch the full interview!
For Investors Who Will Need a Construction Loan
In today’s market, the demand for large vacation rental homes in the Branson Tri-Lakes area is greater than the supply. Therefore, investors are having to create the inventory to meet the high demand! As an investor, if you find yourself starting out at the construction level of business, your builder will be a KEY player in the construction loan process! Before meeting with your bank, you will want to be on top of gathering all of the appropriate information necessary to be approved for financing, and Dwayne speaks into the importance of having a plan in place with your builder for this reason. As Dwayne says, “this will save a lot of headaches and some extra money in the end!”
If you are starting a project from construction, here are just a few of the documents you will need to gather for the bank:
Plans of the project
Schedule of value
This is also where having a realtor who has worked with a bank and understands the loan process makes applying for a loan smoother for you. The Lightfoot and Youngblood team will work with you to make sure you have everything you need for a transaction, and they will work directly with the bank to make sure you have all the appropriate documentation needed.
Getting Started With A 1031 Exchange
We have lots of investors doing a 1031 exchange. If you are just hearing this term for the first time or are doing your first 1031 exchange, there are a couple of key things to be aware of. The main thing your bank will need to know is what equity you are bringing in from a financial standpoint. You will also want to get a CPA involved early on. Your CPA will be able to analyze what the tax benefit is and whether or not it makes sense for you to pay for the 1031 exchange.
It is SUPER important to be organized when moving forward with a 1031 exchange as there is a 45-day time restraint. To help you with this, it is recommended that you have a third party intermediary who will break down the rules and regulations involved with the exchange.
Many of us on the Lightfoot and Youngblood team use TRCB personally in our own investment portfolios, so we highly recommend Dwayne and his team based on first-hand experience! They handle all types of lending and can be there for you from start to finish. This is why individuals like Dwayne and his lending team will be a huge asset to have on your investment power team! To find out more about Table Rock Community Bank, reach out to them through their website or by phone at 417-739-9300.
For more information about building your power team, check out our other blog posts here!
Below you will find Tracey and Dwayne's full interview.