Bank or credit union for out-of-state investment?

1 Reply

Hello all -

I am new to the real estate investment world and am still in the "fact finding" stage. I live in California, and my ultimate goal is to invest out-of-state (likely in Pennsylvania, Indiana, or Ohio) with buy-and-hold, 2-4 unit multi-family cash flow properties.

I am essentially debt free and have funds to get started, but wish to set myself up right for my future borrowing needs by developing a relationship with a good conventional lender. I've heard that credit unions are often more flexible with lending requirements once you get 10+ properties under your belt (portfolio loans and such).

A couple of questions:

- Is there any advantage to working with a bank local to the (out-of-state) market you plan to invest in, or is a local bank or credit union okay? I'd prefer someone I can get access to in person, esp. as many credit unions have fairly primitive online support.

- Is a bank or credit union really the best way to go for conventional lending? I'm not currently looking for private or hard money and don't expect to need that for some time.


@Jeff C.

Talking with the local banks and credit unions can be invaluable. Especially if you are dealing with the commercial lending department. Those guys typically really know their stuff and know the areas well. They can give you a heads up on factors that could drastically sway your decision. 

There is nothing to lose in trying to connect with some of these resources. 

I have found some of my wholesalers by asking local commercial lenders "do you have a great agent who is finding off-market deals?"