Plenty of investors flip in markets they don't live in. The financing works much the same, but the lender will look harder at who is running the job on the ground.
In short: Yes, you can get a fix and flip loan on a property in a state where you don't live. LendingStreet finances investment property flips for out-of-state borrowers, with the same core terms: up to 90% of the purchase price and up to 100% of the rehab budget, paid in draws after work is inspected. The difference is in the details. Lenders want to see a local contractor, a realistic budget for that market, an entity in good standing and a plan for managing the project from a distance.
The loan is secured by the property, not by where you live. Rates start at 9.99% for qualified borrowers, terms typically run 12 to 18 months and loans range from $150,000 to $5M+.
What changes is the risk the lender sees. You can't stop by the job site every week, so the lender wants confidence that someone reliable can. Expect more questions about your team and your local market knowledge.
Many investors borrow through an LLC. If your LLC was formed in your home state and you buy property elsewhere, the property's state may require the LLC to register there as a foreign entity before it does business or holds title. Rules differ by state.
Some investors instead form a new LLC in the property's state. Which approach fits depends on your situation, so talk to an attorney or accountant before you close. Whatever you choose, the lender will want the entity in good standing and its documents ready.
Your contractor is your eyes on the property. Lenders often ask for the contractor's name, license where the state requires one, insurance and a line-item bid. A contractor with references in that market carries more weight than one who just started.
Draws protect you too. Each draw is released only after an inspector confirms the work, so you get an independent check on progress you can't see in person. Ask your contractor to send dated photos with each phase and to provide lien waivers when paid.
Closing practices vary by state. Some states use title companies and escrow, others use attorneys. Many closings can be handled with mobile notaries or remote signing, depending on the state and title company.
You'll need builder's risk or vacant property insurance in place at closing. Work with an agent who writes policies in the property's state, and confirm coverage for a property under renovation.
Choose a market where you can verify the numbers. Look for steady buyer demand, recent sales of renovated homes near your target price and a pool of contractors.
Get local help on what you can't check yourself: an agent who sells flipped homes, a property inspector and the local building department's permit timelines. Our where we lend page shows the states we finance in.
This example is illustrative and not a quote. An investor living in another state buys a house for $200,000 with a $50,000 rehab and an expected ARV of $320,000. The loan covers 80% of the purchase ($160,000) plus 100% of the rehab ($50,000), a $210,000 loan, about 66% of ARV.
The investor plans to bring $65,000 in total cash: $40,000 down payment, $8,000 in closing costs, a $5,000 contingency (10% of the rehab) and $12,000 to front the first phase of work before the first draw is reimbursed. Travel and extra inspections are budgeted separately.
| Item | Amount |
|---|---|
| Purchase price | $200,000 |
| Rehab budget | $50,000 |
| Loan: 80% of purchase + 100% of rehab | $210,000 |
| Down payment | $40,000 |
| Closing costs (estimate) | $8,000 |
| Contingency (10% of rehab) | $5,000 |
| Cash to front first phase | $12,000 |
| Total cash planned | $65,000 |
Experience helps pricing and leverage everywhere, and it matters more from a distance. Past flips in any state count, so list them. First-time flippers can qualify on some programs, often at lower leverage.
Send the scenario and our financing team will review it and come back with 2–3 options.
Yes. We finance investment property flips for out-of-state borrowers. The terms are similar, but expect more questions about your contractor and local plan.
Often a state requires an out-of-state LLC to register as a foreign entity before holding property or doing business there. Rules vary, so confirm with an attorney or accountant.
Not always, but it is wise to see it in person or have a trusted local agent or inspector walk it. The lender orders its own valuation either way.
Draws are released after an inspector confirms the work. You request the draw, your contractor provides photos, and funds are sent once approved.
Often yes, with a mobile notary or remote signing, depending on the state and title company. Ask early so the closing date isn't delayed.
Some programs allow it, often at lower leverage. A strong local contractor and a clear budget help.
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