For years, real estate investors have debated the best way to fund deals. Should you go to the bank, where money is cheap but the paperwork is thick? Or should you turn to private lenders, who move fast but might not be around when you need them most?
According to Robert Mohon, a Tennessee landlord and past president of the Real Estate Investors of Nashville, the answer is clear: banks remain the investor’s most powerful ally.
Mohon stresses that while private money, hard money, and creative deals get a lot of attention, the cheapest and most consistent financing still comes from banks—if you know how to work with them.
Why Banks Are Still the Best
Smaller Banks, Bigger Advantage
Mohon recommends investors look past the national giants and instead take the time to build relationships with the people at your local community banks. Those with under $10 billion in assets, he says, are often more flexible and willing to listen. They can make their own lending rules, and they value long-term relationships with borrowers.
That local touch makes them ideal partners for investors looking to finance rental properties, construction projects, or secure a line of credit.
💡 Quick Tip from Robert: At MAREI’s October 14th meeting, he’ll explain how to approach the right banker—and what to say in that first meeting to get them on your side.
Consistency vs. Flexibility
Private lenders can offer speed and creativity. They may close a loan in days, and they’ll sometimes fund a deal that doesn’t fit neatly into a bank’s underwriting box. But they come with limitations. They can run out of money, they charge more, and if something goes wrong, the relationship can sour fast.
Mohon contrasts this with banks, which have the ability to keep lending indefinitely. Because banks can literally create money, they can provide the consistency investors need to scale portfolios over time.
💡 Quick Tip from Robert: At the October meeting, he’ll share the five things that make you irresistible to lenders—a checklist every borrower should master.
The First Deal Dilemma
For new investors, the choice between private money and banks can feel especially fraught. Many are tempted to lean on friends or family for their first loan. Mohon cautions against it. Without a strong track record, the risk of damaging personal relationships is high.
A safer path, he explains, is to prepare a bank-ready package: a detailed write-up of the property, realistic numbers backed by comps, and a plan for how the project will succeed. Even beginners, if partnered with a more experienced investor, can present enough credibility to secure bank financing.
At MAREI, members often report getting their first loans by partnering with experienced investors in the community—proof that credibility by association matters.
💡 Quick Tip from Robert: He’ll show what must be in your loan package to avoid an automatic “no” from a banker.
Lines of Credit: Instead of Credit Cards
Another tool Mohon consistently recommends is the business line of credit. Unlike credit cards—where balances can carry high fees and punishing interest rates—a line of credit grows with you. Borrow, pay back, borrow again—the bank sees you using it responsibly, and your limit expands over time.
That revolving relationship with the bank, he explains, is what separates investors scrambling for cash from those who are always ready for the next deal.
💡 Quick Tip from Robert: He’ll reveal why a line of credit is every investor’s gold standard—and how to get one even if your banker says they don’t offer it.
Credit Cards: A Tool for Better Bank Loans
It may sound counterintuitive to talk about credit cards in a discussion about bank loans. After all, no one is buying a rental house with a Visa. But Mohon points out that the way you manage your credit cards has a direct impact on how banks view you as a borrower.
Banks don’t just look at your income or your assets—they look at your creditworthiness. And one of the easiest, fastest ways to demonstrate that is through disciplined use of credit cards.
Used properly, credit cards can:
Build a longer credit history.
Improve your credit utilization ratio (a key part of your FICO score).
Show that you can handle revolving credit responsibly.
Boost your overall credit score—unlocking better rates and terms from banks.
Mohon recommends holding three to five major credit cards (Visa, Mastercard, American Express, Discover), paying them down weekly to keep utilization low, and requesting credit line increases every six months. These habits can translate directly into more favorable bank financing.
💡 Quick Tip from Robert: At the October meeting, he’ll share which credit cards he uses and the strategies that raised his score enough to secure larger, cheaper bank loans.
Why Banks Win in the Long Run
At the heart of Mohon’s message is a simple truth: banks are built to lend indefinitely. Private lenders will always be limited by their personal funds. But banks, operating under fractional reserve lending, can generate loan after loan for qualified borrowers.
That infinite capacity, paired with fixed-rate long-term money, makes banks the cornerstone of sustainable real estate investing.
A Lesson Coming to Kansas City
Robert Mohon has built a portfolio that completely supports him—without private lenders, partners, or “creative financing.” Just banks, credit, and credibility.
On October 14th at MAREI’s Monthly Meeting in Overland Park, he’ll dive into:
The five things that make lenders compete for your business.
The attitude and posture that win with bankers.
How to protect yourself from risks banks don’t tell you about.
And why lines of credit beat credit cards every time.
👉 Don’t miss your chance to learn directly from Robert. This info won’t be recorded—it’s only for those in the room.
✔️ Free for MAREI Members and First-Time Guests
✔️ Returning Guests: $35
✔️ Or become a member for just $25/month and get access to all monthly meetings, our investor library, and discounts on workshops.
Reserve your seat today and make banks compete to lend to you.
Robert Mohon
Robert Mohon, known as the professional borrower has other blog post inspired by his social media posts here on MAREI.
