Today Herman and I stopped at the bank to sign a mortgage loan for a rental house we just bought. Herman has been finding some crazy good deals in the real estate market these days, and he is gobbling them up while we can in this buyer's market as we expand our rental business. It is something that we have done often enough that now it is a fairly simple process. I remember our first house and how crazy it was to fill out paperwork and find money for down payments, and things like that. Now it seems like the process is so much smoother and less complicated. Herman has the process down to an art now.
Today when we went to close this loan our banker told us some of the things that they look at when considering whether to give a loan or not, and he told us the weirdest thing. He showed us our financial statement which showed all of our various financial pieces. Then he told us that he used our financial statement for a banker training meeting that he ran. Why? Well, our financial situation is just a tad crazy and complicated. We have multiple streams of income with multiple structures of real estate debt. It's just a little crazy ... not something that bankers in this neck of the woods see very often. Therefore, it made the perfect scenario for banker training. So crazy. I have always liked my financial world to be fairly straight forward and simple, but somehow along the way Herman and I have turned into a complicated financial couple ... and by complicated I don't mean risky. We are really pretty conservative as far as our real estate investing goes. But it sure blows my mind to see all the moving parts in our situation. I could have never done this on my own, but I support Herman. Unless something horribly drastic happens and they close post, we should be okay for a long, long time. I'm just not sure how I feel about being a case study for a group of bankers. Weird. That's about all I can say.
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