LA Investor Expanding Out of State - Looking to Connect with Private Lenders

Investor · Los Angeles · Member since 2023 · 12 posts · 5 votes

Hey everyone, I’m a Los Angeles-based real estate investor and founder of Gather West (real estate acquisitions and holdings). I currently own and manage multifamily properties here in Southern California and expanding into out-of-state acquisitions focused on value-add renovations and long-term holds. I’m here to build genuine relationships with private lenders and capital partners. Not raising capital for a specific deal in this post, but I’d love to connect, learn what you look for, and see if there’s alignment down the road. Thank you!

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Michael Eskenasy

Investor · Pacific Northwest · Member since 2026 · 531 posts · 298 votes

The biggest shift going out of state isn’t finding lenders — it’s proving that your execution travels. I’d build the lending relationship around a repeatable operating package: exact buy box, markets, local boots on the ground, property management, construction oversight, draw controls, reserves, and clearly defined hold/exit criteria. Then a lender isn’t being asked to believe you can operate in a new market; they can see the machinery that makes the geography almost secondary. That also makes the capital conversation much easier because you’re matching the right lender to a defined transaction instead of collecting “private lenders” and figuring out fit later. We’ve been mapping this exact layer from acquisition through capital and local execution. There’s a lot more leverage in getting that infrastructure right before the first out-of-state deal hits your desk.

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Steve Waller
Lender · Houston, TX · Member since 2026 · 64 posts · 6 votes
1w
Since you asked what lenders look for: the thing that changes most when a California multifamily owner starts buying out of state is not the credit file, it is the experience test. Most bridge and value-add programs count completed deals in the last 36 months, and several want part of that count in the state you are buying in. Years of owning and operating in SoCal can still put you at entry-tier leverage on a first file in Ohio or Texas, which catches people with real operating history off guard.
Two things that move terms more than people expect. First, draw mechanics: on a value-add, whether the first draw funds at or near closing or only reimburses you after you have paid the contractor is worth more than a quarter point of rate. Ask that before you ask about pricing. Second, your exit. If the plan is a long-term hold, the takeout is a DSCR loan and coverage gets decided by taxes and insurance in the new market rather than by the rent you underwrote. I have seen a county tax bill move coverage by 0.15 on an otherwise clean file.
Which markets are you looking at? What lenders push on is different in Cleveland than it is in Phoenix or Houston, and if you name them I can tell you which part of the file will get the attention.
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- Erik CaciPro Member
  OP
  Investor · Los Angeles · Member since 2023 · 12 posts · 5 votes
  1w
  We've got a full plan in place and are ready to execute in said new markets. We're going from a $700k fixer in LA to a $70k in the midwest - we've done the toughest market already. I wouldn't have posted if I wasn't ready for investors with a fool proof plan in place for everyone involved to win :)
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- Jay HinrichsBusiness Member
  Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
  1w
  Erik please dont think because a mid west price point of 70k is going to be easier than CA t 700k.. choose wisely and as someone who has funded well over 3k mid west brrrs and or flips since 2002 my advice in the FWIW column is to go into those markets figure out Median price points and by at those dollars or above if your buying well below that your buying bad neighborhoods and unsustainable tenant demographics that your probably going to wish you had not.. I tried this myself post GFC were i bought over 300 of these C D class rentals it is easy to buy but very tough to manage and I let my partners buy me out 18 months later and within another 18 months their portfolio was in BK Just could not manage it all from the west coast and we had local partners in each market. Had I bought better props out of the gate we could have made it.. But supply rental houses for folks who are life long renters or life long section 8 is very difficult if you dont live there and are vertically integrated .. Of course if you just flipping and not holding thats another story.. Some can make this work but its very very difficult.. not trying to be a debbie downer and I still fund these deals in 8 mid west states today but only to well established locals that can make it work..
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- Erik CaciPro Member
  OP
  Investor · Los Angeles · Member since 2023 · 12 posts · 5 votes
  1w
  Thanks for your insight Jay!
  0 Reply
- Jay HinrichsBusiness Member
  Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
  1w
  Its not just hyperbole its actual real world ownership experience. And it really does not matter which market if your buying for basically 1/3 of median price points in a given MSA that is the poor part of town and you will only attract that type of tenant you will take on big time theft risk etc etc.
  There was one member from LA 10 years or so ago that took my advice in Indy and instead of buying low end he bought at the time median price points for the city and he e mails now and again and his experience has been very good properties because there are HOMEOWNERS and not just flooded with investors have doubled and he can choose the better tenants. I know buying a home in the mid west for the price of a car is appealing its what got me into it years ago with the guys that Run the Real Estate Round table on AM radio in LA we did a lot of business with them and their mid west partners.
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- Jay HinrichsBusiness Member
  Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
  1w
  PS there are no shortage of Brokers that are more than happy to help U.. if you want to ping me I can refer a few to you that I know can perform.
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- Drew SygitBusiness Member
  Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
  1w
  Agree with Jay - $70k in the Midwest is highly unlikely to work!
  The City of Detroit has one of the lowest entry points in the country and $70k gets you majority Class D rentals.
  Class C start at around $90-100k now.
  Class B $125k+
  Metro Detroit Ring Cities are about 20% more.
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Michael Eskenasy
Investor · Pacific Northwest · Member since 2026 · 531 posts · 298 votes
1w
The biggest shift going out of state isn’t finding lenders — it’s proving that your execution travels. I’d build the lending relationship around a repeatable operating package: exact buy box, markets, local boots on the ground, property management, construction oversight, draw controls, reserves, and clearly defined hold/exit criteria. Then a lender isn’t being asked to believe you can operate in a new market; they can see the machinery that makes the geography almost secondary. That also makes the capital conversation much easier because you’re matching the right lender to a defined transaction instead of collecting “private lenders” and figuring out fit later. We’ve been mapping this exact layer from acquisition through capital and local execution. There’s a lot more leverage in getting that infrastructure right before the first out-of-state deal hits your desk.
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- Erik CaciPro Member
  OP
  Investor · Los Angeles · Member since 2023 · 12 posts · 5 votes
  1w
  All the back-end work has already been done on the new markets and now ready to execute! Simply looking to connect with lenders to share that exact information. The projects we've done in SoCal are 10x the cost of our new markets, so anything upcoming out of state will be a much easier, smaller scale project.
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- Erik CaciPro Member
  OP
  Investor · Los Angeles · Member since 2023 · 12 posts · 5 votes
  1w
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Nicholas FloydBusiness Member
NY · Member since 2026 · 176 posts · 61 votes
1w

Erik, I like the approach of building the capital relationships before you actually need them. With value-add multifamily and out-of-state acquisitions, having multiple funding options can make a big difference. I work on the business funding side, helping investors access business lines of credit, 0% APR business credit cards, business loans, SBA options, and revenue-based funding depending on the situation. Those can work alongside private lending for renovations, reserves, or other project costs without relying on one source of capital. I’d definitely be open to connecting and seeing where our networks could complement each other.
1 Reply
Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
1w
@Erik Caci
Establishing such relationships prior to needing the capital is a prudent course of action. In my opinion, the areas to concentrate on would be acquisition criteria, experience in previous deals and protection of a lender in terms of risk exposure even if no deal is pending at the moment.
Good luck!
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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 911 votes
1w
Quote from @Erik Caci:
Hey everyone, I’m a Los Angeles-based real estate investor and founder of Gather West (real estate acquisitions and holdings). I currently own and manage multifamily properties here in Southern California and expanding into out-of-state acquisitions focused on value-add renovations and long-term holds. I’m here to build genuine relationships with private lenders and capital partners. Not raising capital for a specific deal in this post, but I’d love to connect, learn what you look for, and see if there’s alignment down the road. Thank you!
Welcome, Erik. If you’re expanding beyond SoCal, I’d definitely put the Midwest on your radar, especially Ohio. There are still some good value-add multifamily opportunities where the purchase price leaves room to renovate and create equity without California-level pricing.
[email protected]614-418-6081
1 Reply
Sruly Goldschmied
Lender · United States · Member since 2026 · 16 posts · 4 votes
1w
Hey Erik, good luck with the expansion. We're a direct bridge lender and value-add multifamily is a big part of what we do. Biggest thing we look at is the as-is value and the exit, a lot less on tax returns. Once you're working on deals in the $500K+ range happy to take a look
1 Reply
- Erik CaciPro Member
  OP
  Investor · Los Angeles · Member since 2023 · 12 posts · 5 votes
  1w
  Thank you so much, Sruly!
  0 Reply
Alfath AhmedBusiness Member
Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
1w
@Erik Caci Your team should look into OOS investing. Definitely one of the easier ways to get yourself into strong equity positions and gain strong number of rental units with lower cost per door in high growth appreciation areas.
[email protected]614-802-5698
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Belinda Rodriguez
Real Estate Broker · Topeka, KS · Member since 2026 · 4 posts · 3 votes
1w
Erik, it sounds like you've done the groundwork before making the move into these new markets, which is important.
From a financing perspective, I think the biggest advantage is having the lending conversation early enough to understand what each lender will want to see for the specific market and strategy—not just the property itself.
For value-add projects, I would be looking closely at the acquisition numbers, as-is value, renovation scope, ARV, exit strategy, and the local team supporting the project. Those factors can make a significant difference in how a deal is structured.
Wishing you success with the expansion. It will be interesting to see which Midwest markets you ultimately choose.
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- Erik CaciPro Member
  OP
  Investor · Los Angeles · Member since 2023 · 12 posts · 5 votes
  1w
  Thank you for your insight, Belinda!
  0 Reply
Danny Gonzalez
Real Estate Broker · Member since 2024 · 129 posts · 60 votes
1w
@Erik Caci Going from a $700K LA fixer to a $70K Midwest buy is not automatically easier. Below-median price points usually mean harder tenant and ops problems, and OOS value-add lives or dies on local GC oversight + PM, not the sticker price. Lenders will care more about your boots-on-the-ground package and exit coverage than SoCal track record alone. Which markets are you actually underwriting first, and what's the hold thesis after rehab?
2 Reply
- Erik CaciPro Member
  OP
  Investor · Los Angeles · Member since 2023 · 12 posts · 5 votes
  1w
  That's the most valuable part! The team in the territory and the refinance plan to exit and get everyone paid :) We'll be buying in TN, and holding the properties as we scale the portfolio.
  Thanks for your insight Danny
  1 Reply
Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
1w
Happy to connect and brainstorm
[email protected]818-269-7983
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Alexandra Garcia
Investor · Houston, TX · Member since 2026 · 6 posts · 2 votes
6d
@Erik Caci, congrats on the expansion! We focus heavily on relationship-driven lending and love working with investors who are actively growing. We're a nationwide funding partner! Even if you don't have a deal on the table right now, it’s always good to have a reliable funding partner in your back pocket so you can move fast when the right asset pops up.

Let’s connect to discuss your pipeline.
0 Reply
- Noah WrightBusiness Member
  USA, Nationwide · Member since 2024 · 165 posts · 86 votes
  17h
  Since you're buying in Tennessee, a fair number of value-add programs want a local angle on the file, whether that's a property manager or contractor already on the ground. Plenty of them will give you real credit for your SoCal multifamily operating history, but some lenders count completed deals within the last 36 months, and a few want part of that count in the state you're buying in, which can put a first out-of-state file at lower leverage than your track record would suggest. Getting that local team lined up before you're in contract usually makes the loan conversation easier. Are you already talking to lenders about how they treat a bridge loan versus going straight into a DSCR refi after the reno?
  [email protected]737-773-3717
  0 Reply
Dwight Shook
Lender · Fort Myers, FL · Member since 2026 · 3 posts · 0 votes
5h
I represent several private lenders that can help with the lending you need. Please message me to get started!
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