Hard Money Question
Are there hard money lenders who will loan to an investor who is out of the state of the property? (I.E. an investor in Virginia wants to buy an investment in Florida to rehab and rent out). I have been having trouble finding one, just wondered if I should stop looking.
I know RealNet's financing will lend to out of state investors, but I am curious as to will the be as happy to lend on a property they aren't selling.
JB
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A lot depends upon the deal. Depending upon the size of the deal and how it is put together and if the lender lends nationwide then it is possible. A lot also depends upon you as in your credit your assets ect.
When doing a HML deal I look to the property and not to the borrower to secure the loan.
Now, in this example you seem to imply that you will be doing or having rehab done. Hence there is execution risk and it is not helped if you can not keep tabs of the work being done. Contractors need regular feedback and you will not be able to see the repairs as they are taking place.
What sort of LTVs are you looking at before and after the repairs? That could be the issue.
John
[addsig]