Lenders out of state?

Question

Hi all - newbie to BP... and investing! I have one rental property and am looking to invest in out-of-state rentals. SFH, buy and hold. I live in NYC (def not investing here) and I'm wondering about working with lenders out of state. I'd be grateful for any best practices/experiences you're willing to share.

Thank you!

Raya Rahbari · Answer

THANK YOU, EVERYONE!

The cities I'm looking at are Memphis and Pennsylvania, Pittsburg. I'm hearing that a broker route may be the best option - that coupled with copious amounts of research on my own. I want to work with someone long-term and build a solid team around me. Can't do it all alone!

On to more research...

James Wachob · Answer

@Raya Rahbari I'm based in Memphis and have a portfolio of homes. (see my BP profile page) I've posted my entire portfolio on there. If you need some connections I'm happy to share my contacts.

Chris Choe · Answer

@Raya Rahbari, working with a lender out of state or in state is similar since underwriting guidelines for the most part are pretty similar across lenders. For example, all conventional loans have to meet the GSE/Fannie/Freddie guidelines (same for VA/FHA loans). The first step I recommend is to find a lender you feel you're comfortable of starting a conversation with and connect with them over the phone or zoom. You should read their reviews on Google and/or Zillow and isolate who to speak with. From there, if you're ready, then start an application with the lender/broker so that they can provide you with your option of loan products to consider. We're licensed in 15 states so if we're in one of the states you're considering, I'd be happy to connect.

Patrick Drury · Answer

@Raya RahbariWhere is your current rental at? I would recommend specifying that. I have found lenders that operate in the state where you are investing work the best.

Brandon Beardt · Answer

Hi Raya,

Welcome to BP! Good news for you is that there are so many conventional and non-conventional lenders out there that have access to various products/programs that you can pick and choose from. It's just the searching and finding the one that best suites your needs that may take some time and research. I may suggest working with a mortgage broker who works with various lenders to help you on your quest. It would help save you some time and that way, you can build a relationship with them.

Daniel Meneses · Answer

Welcome! When it comes to finding good lenders, especially out of state, reviews are everything! If you have a specific area you are looking to invest in I'd recommend joining facebook groups in that area and asking for reviews/advice.

Nathan Murith · Answer

Hey @Raya Rahbari, welcome to BiggerPockets and congratulations on doing the work!

Do you know where out-of-state you want to invest? I have had more success with smaller local (to where I invest) banks than I have with these national lenders. In fact, all of the Bank of America’s, Wells Fargo, etc NEVER had the best mortgages for us. We always found much better with smaller local bank or mortgage brokers.

In any case, google is your friend, you’ll find some, but more importantly if you can get referrals from other investors, that would be miles better.

I would also recommend connecting with a mortgage broker who operates where you operate as they can do the work of shopping around for you!

We specialize in out-of-state investing and have our portfolio in the Midwest. I have worked with great lenders and brokers, I am happy to provide them as referrals if you are interested (I am not affiliated and get no kickbacks).

Happy to share any and all our mistakes, successes, tools, tips, tricks, do not hesitate to reach out, connect and DM me if interested.

Lenders out of state?

Most Popular Reply