Rental Property Investor · Springfield, VA · Member since 2013 · 56 posts · 16 votes
Hello BP, I have been reading a lot and am sort of confused. Many people talk about finding a local lender to find funding. What if you invest out of state? Would you try and find a bank in the state of the property you are investing? Or would you go to a local lender where you currently live?
Hello BP, I have been reading a lot and am sort of confused. Many people talk about finding a local lender to find funding. What if you invest out of state? Would you try and find a bank in the state of the property you are investing? Or would you go to a local lender where you currently live?
Any lender, if they had the preference, would want to loan funds locally. However, like an investor, some lenders don't want to limit their fortunes to what the local market offers which can be saturated and will in some cases fund out of state projects. The investor though typically wouldn't care where the lender is located. Rehabbing is a different beast. Due to the level of risk involved, many hard money lenders for instance can be quite narrow in markets where they lend.