Out of State Investor looking to appear local to lenders

[Terrance Thames]

Hey Everybody!

I have a lending question. I am in my first flip project as an out of state investor living in Los Angeles and flipping in St Louis. I was born and raised here so I know the market and have a strong network of other investors who have been helping me get started. However, because of my experience level in combination with being an out of state investor, I had to use Hard Money to fund the project with rather unfavorable terms. The primary challenge of getting funding was overcoming the risk that a lender was taking on through an out of state investor. 

If I was local I would have been able to gain funding through a portfolio lender which would have yielded much better terms. So I am looking to find a way to show residency locally in order to show portfolio lenders for my next project without having to actually buy a multifamily rental using one of the units for my office (As I know other investors that have accomplished this by doing that). 

So far what I have explored is that I looked into getting a MO state ID to show residency here to lenders. I do have proof of residency that I can show in order to get an ID but the state of MO would force me to surrender all foreign ID of CA.  I could do that and then go back to CA and get a CA state ID. That however, would have implications on both car insurance and another unrelated business that I have based out of CA. Nor does it address the address that shows up on my personal taxes and at the moment my CA business that isn't real estate related. Also I have been looking for portfolio lenders that are ok with lending to out of state investors on flip properties and I haven't been able to find one yet because that would probably be the easiest solution. (if anyone knows of any please let me know!)

So I am wondering is there any other solution that any of you know that would allow me to prove local residency to lenders other than what I have mentioned? Or do I just need to bite the bullet and have my next property not be a flip but a rental with me in one of the units?

Thanks in advance!