June 26th, 2017 9:46 AM by Andrew Liu, President NMLS#249736
California has nation’s largest economy by far, its GDP is almost twice as much as the second largest economy in the nation. No wonder, many Californians love to invest in real estate: Most of them would invest in California, however large number of people would invest in the rest part of the United States.
One challenge is find a lender who would lend in other states. Banks are typically the worst places for such lending inquires, bankers simply do not know how to go about it. And most of the private lenders in California would shy away from lending in areas where they are not familiar with.
That was a challenge that I faced recently: A client of mine purchased an investment property in another state through auction, and at the time, he used a high interest rate loan to help him to acquire the property. He thought he could refinance out of it after the purchase. After trying endless times unsuccessfully, only then did he realize that it wasn’t an easy task.
Using my network of lenders, I found a lender in that state and helped him to finally refinance out of the high interest rate loan into a much more reasonable rate loan.