How Are You Structuring Deals in Today’s Market? Especially in Sub-$100K Price Points

[Joe Grespin]

Lately, I’ve been noticing more investors focusing on affordable markets where properties are under $100K — places like parts of the Midwest or smaller cities in New York. These lower price points seem to come with unique financing challenges (especially when light renos are involved or when the down payment is tight).

I’m curious — for those of you working on buy-and-holds or light rehab deals in these kinds of markets:

• How are you structuring your financing?

• Are you using local banks, DSCR loans, private notes, or a mix?

• Any lessons learned on what not to do?

Would love to hear how others are navigating this — I think we all pick up little gems hearing how others are structuring things.

[AJ Exner]

Yeah, finding the right partners once you've identified your 'buy box' is key. There are DSCR lenders going down to ~$60k-$65k properties and even lower if you portfolio a few together, but being aware of who they are, where they operate, and how they do things is really important.

Regardless, most still want to see some kind of 'skin in the game' though. I think the biggest mistake I see is inexperienced investors asking people to do the deal 'for them' because 'the deal is so good, why would they not?'.  It's still important to maintain a good FICO, be willing to bring a reliably sourced down payment, and have the skills necessary to maintain a good, well performing portfolio.