Can’t seem to find financing as new investor.

[Quincy Jones]

I read all these articles and videos where ppl swear up and down you can get financing as a new investor with low down payments or dscr loans etc. but I’m finding they all have road block catches. Not sure how anyone starting out can break in without being rich or cash heavy. I have been looking into buying in Milwaukee Wi, things there are affordable I have $28k saved up and a lot of the duplexes there are around $60k-300k but how am I suppose to get financing when lenders are requiring a minimum of $175k loans, 9.8% interest rates, and want you to have a buffer of 6 months savings for mortgage. Like why can’t I just get financing for a $80k duplex so I can get my feet wet? Or maybe I’m just so unknowledgable I don’t know how to do it. Anyone else having issues finding adequate lenders for starters? 

[Christopher Jason Lloyd]

Hey Quincy,

I know this can be extremely frustrating.  All the big wins on social media and the podcasts certainly set an unrealistic expectation.  

If you are willing to move and be a little uncomfortable for a few years, househacking would be the best way (in my opinion) to get in for low money down. Buy small multis or singles with ADUs that need work. Fix them up while living there and rent out the units to help reduce your mortgage. Take the money saved and pay into a separate account each month until you have a downpayment for the next one. Rinse and repeat a few times and watch it appreciate. Then you could sell, take out a HELOC, or refinance to pull the cash out. Bam, you now have capital and experience.

You could also try subto.  Just know if you want low money down and you do owner finance/subto/lease options, you will need to do direct to seller advertising and have a good real estate attorney.