Do you prefer funding flips locally or out of state?

Do you prefer funding flips locally or out of state?

Member since 2025 · 111 posts · 56 votes

I’m curious — for those investing in multiple markets, do you usually look for local lenders or are you comfortable working with out-of-state funding partners?

What’s been your experience so far?

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  • Joseph TadresPro Member
    Real Estate Agent · Columbus, OH · Member since 2025 · 184 posts · 179 votes
    1y

    I live in Ohio and have only invested in Ohio. The hard money lender I use is based out of Kentucky, but does a lot of work here in Columbus. 

  • Specialist · Member since 2025 · 483 posts · 270 votes
    1y

    I use both. Here’s how I think about it across markets:

    • Local banks/credit unions: great for speed, appraisals that reflect the neighborhood, and flexibility when you have a relationship. I lean local for BRRRRs, refis, and small multis when I need a quick, clean close.
    • Out‑of‑state or national lenders: useful for DSCR loans, portfolio products, or when I want standardized terms across markets. I'll also tap private lenders when a bridge is needed or the deal is time‑sensitive.

    Quick framework:

    1. Match lender to exit: refi-to-hold favors local portfolio banks; long‑term rentals with simple underwriting fit DSCR; heavy value‑add often starts with private or hard money, then refi local.
    2. Price vs speed: if time kills the deal, prioritize the lender who can actually close fast over saving a small fee.
    3. Build a bench: 2 local banks, 1 DSCR lender, 1 private money option. Keep them warm with updates so your next approval is faster.
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