multi family lenders for out of state deals

[Diva Rescia]

I am looking to purchase a 20  unit deal out of state. I currently live in CA, but looking to invest in a different state. Other than speaking with a mortgage broker, almost all the local lenders (commercial) mentioned they would have a hard time providing me with a loan of this type to an out of state investor. Most only offered me a loan for 1-4 units. 

I do not understand how other folks on Bigger pockets mention they purchase MF deals in different states. 

Any suggestions.

[Young Ho Yoo]

There are 2 ways to go.

Bridge Financing
Usually used for value add properties with under market rent. This gives you the opportunity to acquire the property and get it into a shape where you can get permanent financing. You can also get your rehab financed through this.

Permanent Financing
There are plenty of commercial lenders that will finance the deal out of state but often times they want at least $500k in loan amount. Rate can be comparable to FNMA permanent financing. Main thing is the property occupancy and debt service coverage ratio often time needing 1.2-1.25. The most important thing in purchasing a multi family deal is the property itself along with your personal financials. Personal income not so much. I'm in Cali but we've financed FL, TX, OH no problem.