Loan for out of state BRRRR

[Kyle Nield]

Hey,

I'm pretty new to real estate investing (hoping to buy my first property by the end of the year). The part that still confuses me a little is the loan process. Does somebody mind helping me understand the process for financing BRRRR deals OUT of state. Do you have to use a bank in the state that you're buying the property in? What about if you use a hard money lender? For those that use hard money lenders, do you typically get a bank on board with refinancing after you've remodeled, or do you start working with a bank from the very beginning? Do banks lenders have a problem with a fact that you're using a hard money lender for the initial loan?

[John Warren]

@Kyle Nield if you are in the 1-4 unit space then you can just use a mortgage broker from one of the larger national players for the cash out. My guy works for Loan Depot, and I know he was able to work in most states. For the seasoning period, I am seeing 6 months seasoning still and you will want to make sure your hard money loan is recorded as a mortgage so you don't have issues down the line.