Call every local investor agenda (look at the agents that have investment property listings and call them) and call every local landlord that owns multiple properties (you can get lists off of Deal Machine).

If you play around with my DSCR pricing engine link in my profile's bio you'll see that the difference in rate for 680 vs. 780 is about 100 bps.Most lenders have brackets for about every 20 points or so.  680-699, 700-719, etc.

So, if you create an LLC in another state, you will likely need to register it as a foreign LLC in California.

So which is better?  

The good subs in your area will likely have plenty of work already and may not even return phone calls.

Lots of leg work, calls and emails, but if you can find a few deals that could get you started with enough capital to get into your first deal on your own.

My partner is a carpenter so that was what we wanted.

As small lenders, we’re in frequent contact with our borrowers, so we usually know how they’re doing.

This way on the cash out you can retain as much of the HELOC capital as possible so that you can put those funds back.Got it!

I’m in Ohio, so I can purchase a property with $40k cash out, invest $10k in repairs, and rent for a couple hundred above the monthly operating costs.