All Forum Posts by: Martin Koch

If you are looking for conventional financing, the lender can be anywhere. I suggest you get a recommendation and if you like them then use them every time even in there are slightly cheaper options.

My normal lender has far exceeded expectation and always got me the loan. Note I did not say anything about what he charges. His service to me has been incredible (it helps that I probably have used him over 2 dozen times). He has offered us free preliminary title checks, to act as escrow so I can go under contract on the weekend, free skip tracing, access to a comp tool, he always answers or gets back to me quickly when I call, and most important he has always got us the loan. I consider him on the forever team. He used to be local, but now is out of state but I will use him every time it is possible.

Our most recent offer was a non warrantable unit OOS (unfortunately not accepted). My preferred lender is not licensed in that state but I was told from multiple agents that offers associated with lenders from outside the market are viewed as weaker than those associated with local lenders. This is because some of these non-local lenders do not have a good understanding of the nuisances of lending in that market and therefore the preference of offers associated with lenders in that market. In these cases I suggest you use a local agent so your offer is as strong as possible.

Good luck

Appreciate the insights @Dan H. - interesting that a local lender can provide an edge in some markets. I've seen a bunch of your posts around the forums and they have been really helpful.

0 Votes

San Diego, California

@Kenneth Donaghy thanks for sharing your take. My initial thoughts were that it would make most sense to identify a lender for pre-approval prior to engaging with an agent/broker (this is what I did with my primary). You make an important point though - a solid, local agent can help facilitate connection to a lender they have experience doing deals with.

Appreciate your thoughts on HOAs as well, hadn't considered comparing annual dues to water/trash costs.

Absolutely have entertained small MFH in San Diego but unsure about whether I can make it work at this stage. I'll write you a line, would love to hear more about the opportunities you're seeing in this category.

1 Vote

San Diego, California

@Jake Kain thanks for sharing your perspective. I'll give you a shout if I lock in on AZ.

0 Votes

San Diego, California

Hey BP,

First time poster - my name is Martin and I live in San Diego. Professional background is in business development & technical sales in the biotech space. My experience in real estate investing is limited, though I did purchase a condo here in Little Italy in 2019 that I plan to run as a long or mid-term rental in the coming years. The condo is in a highly sought-after building in the neighborhood and serves as our primary residence today. I expect the unit to cashflow $1,100+/mo when I get it on the market as a long-term rental.

I'm gearing up to make my next investment and have identified a few target markets. My budget would allow for another purchase in San Diego, but I'll most likely be limited to properties within HOA communities. My gut says it would be best to avoid another investment within an HOA (an expense I have limited or no control over), though I'd welcome opinions from the community.

This has me considering other markets - some of which I can drive to (Arizona) and others a bit further (Midwest). My preference as a novice investor would be to stay closer to home so that I can more easily travel to the market for due diligence, general maintenance, etc.

My immediate question is about identifying a lender to support the new investment. How important is it to work with a lender that is local to your target market? If I were to invest in Arizona for example, would it be advantageous to identify a lender there or would any here in CA work just as well?

For context, the opportunities I'm most interested in are SFH and small MFH long-term rentals, ideally turn-key.

Thanks and happy to be here,

Martin

0 Votes

San Diego, California

All Forum Posts by: Martin Koch

Martin Koch has started 1 posts and replied 5 times.

Post: Has anyone used BNBCalc?

Post: Advantages of working with a local lender?

Post: Advantages of working with a local lender?

Post: Advantages of working with a local lender?

Post: Advantages of working with a local lender?