Bought my First BRRRR, having some difficulty finding a lender

[Jeff G.]

I bought my first BRRRR a week ago. I got it for $35k, I'm putting ~$25-30k into it and it should be worth $100k when I'm done with it. I just had an offer accepted on a second property for $50k that really only needs lipstick to achieve optimal rents. I close in two weeks. All figures are cash, there are no loans involved yet.

My intention was to take out a DSCR loan on each of the properties in order to access the equity and purchase additional BRRRRs. Unfortunately, most lenders I'm hearing from have a lending minimum of $100k that means neither properties qualify. This is frustrating. I'm buying in cash and I have a credit score in the 700's. I was expecting obtaining financing after the fact to be the easy part. Any suggestions?

[Galen Ikonomov]

Quote from @Galen Ikonomov:

There is a law that is called CRA and all the banks have to oblige by this law. Community Reinvestment Act. Meaning that banks have to invest in any income kind of communities (low, middle , high ) ( big banks of course are not doing it and are covering themselves with "donations" ). Small local/regional banks or Credit Unions are definitely going to follow that and therefore will have more lenient rules on loan amounts, fees, underwriting and etc.

 Simplified - you already heard it from the rest of the people here. Go to small/local banks and Credit Unions and tell them what you are trying to accomplish. When you are talking to them, add to the conversation that you are trying to improve the neighborhoods where you are trying to invest.