Answers · Investing
Can I get a loan for my first investment property with no experience?
Yes, for many deals. A first rental is the easiest place to start, because rental loans care more about the property and your credit than your track record. A first flip or a first build is harder but not closed: some lenders will consider one, usually with more of your own cash in the deal and a contractor who has done it before.
Written by Andrew Malm, Senior Loan Originator, NMLS# 2663426. Last reviewed .
Lenders price risk, and experience is how they measure it. Someone with five finished flips gets more leverage than someone with none. That does not mean the door is shut. It means your first deal is funded on more conservative terms, and each finished project improves the next one.
For a first rental, a DSCR loan or a conventional investment loan can both work. Which one depends on how your income documents and how many properties you plan to buy. I run both and show you the difference.
For a first flip, the lender wants to see that someone on the deal knows what they are doing. A licensed contractor with a real scope of work and a realistic budget does a lot of that for you. So does a deal with room in it: bought right, with a budget that includes a cushion.
What counts as experience is broader than people think. A rental you already own counts with many lenders. So can a major renovation of your own home, or years working in the trades. Tell me all of it.
What I'd do
- Write down everything you have done with real estate, even if it feels small.
- Line up your contractor and your scope of work before you shop for money.
- Hold cash back for surprises. First projects always have some.
- Start with a deal that works on conservative numbers. Your second loan gets easier.
Have a situation that does not fit the article? That is most situations. See your options or text me at 763-373-9360.
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