How can I obtain finances for investing in Lake Ozark Missouri area?

[Account Closed]

I am a 21 year old recent college dropout, and I am very excited to get started in REI while finishing my real estate agent program.

I don’t make much money currently, and have under 10k in my account so I can’t afford a down payment without taking out an entirely separate loan. Is there a financial program that can assist me, or a way I can get money for a downpayment? I am currently looking for properties within the 300k range.
Thanks so much for any help!

[Andrew Postell]

@Account Closed I'm having to guess a little bit here but Bigger Pockets is usually about investment properties. So if you are, in fact, looking for an investment property then no VA, USDA, or anything like that can be used.

Generally speaking there are 2 main types of loans for investors: “Conventional” and “Portfolio”

Conventional - I'll define these as loans that come from Fannie Mae and Freddie Mac (if you recognize those names). These loans are all 30 year fixed rate loans. They have the lowest rates we can find and since they are 30 year fixed...they allow us to cash flow better...which helps us qualify for other loans later. The draw back to these loans is that they are more paperwork heavy than the other "portfolio" types of loans....and you need "normal" types of income.   Fannie/Freddie money = Fannie/Freddie rules. NOT the bank's own money.

Portfolio - I'll define these loans as loans that come from the bank's own "portfolio" of money. Sometimes referred to as "commercial" loans. Sometimes "bank statement loans". Sometimes "DSCR" loans and other names. Portfolio loans are a lot more flexible than "conventional" loans. Bank's money = Bank's rules. If they like you, then maybe they will lend to you. But since there is a limit to how much money the bank has access to....their rate will be higher...and usually a shorter term. The most common portfolio style loan in Texas is a 20 year adjustable rate loan. These loans are easier to get but the terms are different. This is the type of loan that can ignore your income and use the income of the property.

So if you are seeking an investment property, and you have limited funds available, I would suggest looking into the BRRRR Method. Let's start there. And then you can use "portfolio'd" styles of money to help you get financing.

Hope all of that makes sense.  Thanks!