Out of State financing

[Frank Houng]

We live in Southern California, and as a just starting out real estate investor, California home prices seem to be too high.    We recently turned our focus out of state, but find it's harder to get financing for our out of state real estate purchases.

I'm not sure if it's right way to go to my local bank in California and ask them to consider financing our out of state purchases,  or may be I need to go to a bank in the area where we are investing, and ask the bank to do a local deal for an out of state investor.

Also it seems to be harder as a new real estate investor because the bank I deal with does not consider my real estate income as part of my income since it's very new addition.   From what I was told, my bank would not start considering my rental income as a landlord until the property has 2 year operating history

Anyone has experience with financing out of state deals?

[Ali Boone]

Whether a property is in-state or out-of-state doesn't matter except with what lender you use because they have to be licensed to lend in the state that the property is in. They don't even have to be based out of that state as long as they are licensed to lend there.

I would turn your focus on finding lenders who are investor-friendly, more than worrying about locations. The major difference, and deal-breaker, with lenders comes with whether they are investor-friendly and deal with investors on a regular basis. THAT's what matters.