Hard money lenders for buying out of state

[John Hilyard]

Im at the point where Id like to begin investing in rental houses out of state, nearly half way across country in Georgia. Im seeking a hard money lender partner to facilitate the financial needs for that purpose. Does anybody know of a reputable company or private lender who might work well? Thank you.

[Philip McCleary]

Why hard money? They charge a fortune and it’s short term. Hard money route is best for flipping so why would you want to flip so far away. If this is your first rental I would suggest staying close to you and go with a local bank or credit union

[Caleb Jordan]

Originally posted by @John Hilyard:

Im at the point where Id like to begin investing in rental houses out of state, nearly half way across country in Georgia. Im seeking a hard money lender partner to facilitate the financial needs for that purpose. Does anybody know of a reputable company or private lender who might work well? Thank you.

I would follow some of the local forums where you want to invest and you will find some good local recommendations. Most HML companies will be able to help out of state investors just fine, almost everything can easily be done remotely. With Individuals it will come down to their preferences and be much more case by case.

[John Hilyard]

@Philip McCleary Thanks Philip. That makes sense. My challenge has been getting approved in the areas I want to buy a rental out of state in Georgia living in Oklahoma. Local banks in Georgia havent seemed keen on leveraging my equity in Oklahoma properties as collateral for ones in their market.

[John Hilyard]

@Caleb Jordan Thanks Caleb. Thats solid advice on forums!

[Philip McCleary]

Originally posted by @John Hilyard:

@Philip McCleary Thanks Philip. That makes sense. My challenge has been getting approved in the areas I want to buy a rental out of state in Georgia living in Oklahoma. Local banks in Georgia havent seemed keen on leveraging my equity in Oklahoma properties as collateral for ones in their market.

 Are you not able to buy a property and use as a rental in your home state. Best to build a portfolio closer to you before you branch out. It will minimize your risk.

[Caleb Jordan]

Originally posted by @John Hilyard:

@Caleb Jordan Thanks Caleb. Thats solid advice on forums!

 You're welcome. Is your strategy to get buy and hold loans on the purchase or purchase using rehab loans then refi into long term financing after property is fixed up?

[John Hilyard]

@Philip McCleary I have 4 rentals here in northern Oklahoma, but market hasnt had as many homes on it as Id hoped up till now. I have family in Georgia and lived in Atlanta for a number of years. Id like to invest in coastal region near Savannah or Brunswick so I can write off a vacation/business travel to do deals a couple times a year there is the idea.

[Philip McCleary]

Ah - that makes sense. Try Athas Capital in California, they have a program with no DTI, no reserve, stated income.

[John Hilyard]

@Caleb Jordan Im not sure honestly. I was thinking perhaps I could use my local bank to give me a fix up loan through my LLC that I could use to purchase out of state property, thus buying myself time to find a bank in that city to get a 15 yr loan with shortly after.

[John Hilyard]

@Philip McCleary Okay yeah. I will look them up. Thank you!

[Philip McCleary]

I think you need to go through a mortgage broker as they don’t do retail but I just closed 3 transacations. They were not smooth but the program requirements are the best I have seen thus far. I mean they don’t look at nothing but your credit report and where the DP comes from

[Stephanie P.]

Originally posted by @Philip McCleary:

I think you need to go through a mortgage broker as they don’t do retail but I just closed 3 transacations. They were not smooth but the program requirements are the best I have seen thus far. I mean they don’t look at nothing but your credit report and where the DP comes from

 Why weren't they smooth?  Just curious.

[Boyd McClean]

Suggestion. Market to holders of IRA's in Georga. Interest will be a couple of points above market but funding is clean and smooth. Many owners of IRA's would be happy with 6% rather than 1/2% in a CD.

[John Hilyard]

@Caleb Jordan just saw this....yes thats my strategy.

[John Hilyard]

@Philip McCleary thanks Philip!

[Ryan Cooper]

@John Hilyard - Any luck with pulling the trigger on using HML/private money to invest out of state? I have quite a few ideas this strategy could help fund.