Jonathan CroninREI Accelerator, Rei Accelerator · Multifamily Real Estate Investor & Coaching Leader

Financing Strategy Local vs Nonlocal

21 Nov 2024

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A short YouTube excerpt (speaker: Jonathan Cronin) explaining that many banks prefer to lend only to buyers local to the property’s market, which can block non-local buyers from obtaining bank loans. The speaker recommends using bridge loans to purchase, renovate/season the property, and then refinance into cheaper capital as an alternative financing strategy.

A lot of times, the banks only lend to guys or gals that are local to the subject property. If you're buying a deal in Murfreesboro, Tennessee, if you're not local to that market, sometimes the banks won't lend you money, so it's not an option. In that case, you may need to use a bridge loan, Buy the property, improve it, season it up a little bit, and then refinance it with, you know, some cheaper form of capital.