commercial lender need to be in the same state as the property?

[Sandy Metivier]

Hi… I have a 6-unit in Cleveland OH that I own in full, and now I’d like to seek a cash-out refi commercial loan/mortgage. Does the lender need to be in the state the property is in (Ohio)? (Oh, and I live in CA).

I’m also open for any tips for where I should start, or lender recommendations.

Thanks in advance!

-Sandy

[Alex Bekeza]

@Sandy Metivier This varies quite a bit lender to lender and program to program. However, speaking to your situation, just about any mortgage broker should be able to originate a small balance commercial loan like that for you since Ohio is not very strict on out of state bankers/brokers/lenders and this would not be a Fannie/Freddie product.  This is assuming the broker is familiar with those products.  "Business purpose" loans like this have more lax requirements from the loan originators.  I'm in Los Angeles but have done countless in Ohio and the midwest in general (thanks to the nationwide BP community). 

@Salvatore Lentini Makes good points regarding lender's POV on out of state investors.  At the local level, many banks want to see the borrower close by and/or with an established track record.  Others are fine as long as the borrower is using 3rd party professional property management. Since BP and social media are the main ways I connect with borrowers I've embedded myself with some lenders who allow first time 5 + unit operators, allow out of state investing, etc.