Financing Options for CA Investor Investing in St. Louis

2 Replies

Hello BP Friends!

After successfully completing several BRRR's for my LLC based in St. Louis, MO, I am now living in Los Angeles and I want to start a new LLC based here but continue to invest in St. Louis. I have my team in place for the most part, but I am just curious to learn about my financing options! These questions are geared towards CA investors that are investing out of state! :-)

1) What lenders are you using to acquire the properties out of state? (Hard Money, Line of Credit, ETC). Ideally I want a lender that will fund me 100% of the purchase of the property and all of the rehab expense.

2) What lenders are you using to refinance the property once the rehab is complete and it is rented out?

3) Where is your LLC based? Is it based in CA?

4) What are the best REIA's to attend in the LA area?

Moderators: If there is a more effective place in the forum for this thread to be, please feel free to move the thread! :-)

I look forward to reading the reply's to this!

-Aaron McKenzie

Though I don't live in California, I am an out-of-state investor investing in St. Louis.  I lived in Lancaster, CA for 3 years as well so I understand the LA dynamics.

1) I've built relationships with local banks in both cities and have used traditional (i.e., freddie / fannie mac loans) for most of my properties thus far.  I just recently reached my 10 loan limit, and now will transition to local commercial / portfolio lenders in those areas.  I've used F&B Financial Group.  They have both traditional and commercial lending arms.  Longhorn is a Hard Money Lender that I've used.  My rate was 14% with 2 points.  They will lend on 100% of the purchase price plus 100% of the rehab on a draw schedule.

2) I just completed my first refinance out of the HML from Longhorn using F&B Financial Group. They then sold the loan to Wells Fargo.

3) The general rule of thumb is to have your LLCs located in the state you are investing in. I have one in St. Louis and one in New Mexico which are currently my primary investing locations.

4) There was no REIA I was aware of when I lived in Lancaster.

I hope this helps.  Happy Hunting!