Loan for out of state BRRRR
Hey,
I'm pretty new to real estate investing (hoping to buy my first property by the end of the year). The part that still confuses me a little is the loan process. Does somebody mind helping me understand the process for financing BRRRR deals OUT of state. Do you have to use a bank in the state that you're buying the property in? What about if you use a hard money lender? For those that use hard money lenders, do you typically get a bank on board with refinancing after you've remodeled, or do you start working with a bank from the very beginning? Do banks lenders have a problem with a fact that you're using a hard money lender for the initial loan?
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@Kyle Nield if you are in the 1-4 unit space then you can just use a mortgage broker from one of the larger national players for the cash out. My guy works for Loan Depot, and I know he was able to work in most states. For the seasoning period, I am seeing 6 months seasoning still and you will want to make sure your hard money loan is recorded as a mortgage so you don't have issues down the line.