Out of State Loans

11 Replies

Hi All,

I am looking to purchase rental property in AZ. I live in NY. Do I need to get a loan from a bank in AZ or can I get one in NY?

Another question is, should I get a loan from a Wells Faro/Chase type bank or a smaller one? 

simple answer is as follows:

Get your loan from the lender offering the best rate and terms 

Your lender does not have to be located in the state where the property is located, but does have to be licensed to lend in that state. 

You can source your financing from a lender that is licensed to lend in the State the property is located in.  You will find better terms with both mainstream lenders and small communot banks and credit unions depending on the deal.  Depending on your strategy, you might also consider private money lenders for acquisition funds and then refinance into permanent financing later.

You have to use a lender who is licensed to loan in whatever state you are buying. And I would stay away from the WF/Chase big banks and not only stick to a smaller one, but stick to one who specializes in investment properties. Otherwise you may never see a close on a house.

What has you drawn to AZ from NY?

Originally posted by @Chaim Zigelman :

I am still considering NY it's just that the price of properties in NY is extremely high. I have to do more digging into markets/submarkets where I can get in. 

Well first, Welcome to BP. I am a fellow NYer myself from Queens Village and everywhere else. I know what you mean about the prices. I currently live in VA and it is more obtainable to get properties out here.

Depending on your financial situation and experience NY may be a bit hard to just jump in to. I started my investment dealing in wholesaling. I made a killing with that. Plus I worked with a really good mentor. Make sure to explore all avenues of the investment world. Take a look at the market in the areas you want to invest in. You dont want to jump in without the proper knowledge and know how. 

Newtwork and connect and ask question. Please share your journey as well so others can learn from your success and set backs (if any).

@Danielle Jones

Thanks! I know what you mean. I am looking for a mentor at the moment. I signed up for a REIA meetup tomorrow night. Looking forward to networking and meeting people who can become a mentor to me.

I still want to consider doing investments in NY but probably not in NYC. I'll need to do some research to find the right market/submarket.

I've been reading newspapers, MLS and using websites like citydata.com to look into areas but if you have any good suggestions on finding good markets/submarkets, I'd be interested in hearing them!

bls.gov is a great site for endless information.  It's a bit tough to navigate but, lots of info.  signing up on multihousing news is also a good source of market information.  

Agreed with Danielle, just make sure you fully understand the deal before jumping in (especially for your first)