For many first-time investors, the idea of buying an investment property feels out of reach. They picture mountains of paperwork, endless income verification, and a bank scrutinizing every detail of their personal finances—only to end up with a rejection letter.
But the reality is far more encouraging: real estate investing is more accessible than most people realize. Thanks to private lending, investor-focused financing, and flexible loan programs, the barriers to entry have never been lower.
At Finance of America Commercial, we work with new and seasoned investors every day who are surprised at how straightforward the process can be once they’re working with the right lender. Here’s why real estate investing may be easier to access than you think.
Myth 1: You Need Perfect Personal Income to Qualify
Traditional banks often require extensive income documentation—W-2s, tax returns, and debt-to-income ratios—making many self-employed individuals or entrepreneurs feel excluded.
The Truth: Private lenders focus on the property’s cash flow, not your personal paycheck. With DSCR (Debt Service Coverage Ratio) loans, if the rental income covers the debt payments, you’re eligible—even if your personal income fluctuates.
Investor Benefit: Instead of stressing about tax write-offs or self-employment complexities, you can qualify based on the strength of the deal itself.
Myth 2: The Process Is Complicated and Time-Consuming
Big banks can take months to approve and close a loan, which isn’t practical when deals move quickly.
The Truth: Private lenders like FACo streamline the process. Our underwriting is designed for investors, so we:
- Move quickly, often closing in weeks instead of months.
- Focus on the property and deal structure, not endless personal documentation.
- Offer programs tailored to flips, rentals, and new construction.
Investor Benefit: You can move at the speed of the market and compete effectively—even in competitive East Coast or West Coast markets where timing makes or breaks deals.
Myth 3: You Can’t Buy Under an LLC
Some investors assume they must borrow in their own name, which exposes them to liability and complicates accounting.
The Truth: With private lending, you can close loans in the name of your LLC or investment entity.
Investor Benefit:
- Limits personal liability.
- Simplifies tax reporting and portfolio management.
- Keeps your investment activity professional and scalable.
This flexibility is especially attractive for investors looking to build long-term rental portfolios or repeat fix & flip projects.
Myth 4: You Need a Fortune to Get Started
Another common misconception is that you need six figures in the bank to start investing in real estate.
The Truth: While down payments and reserves are necessary, private lenders often provide higher leverage than you’d expect—especially for well-structured deals.
For example, FACo offers:
- Fix & Flip Loans with high loan-to-cost ratios.
- DSCR Loans for stabilized rentals.
- Ground-Up Construction Loans for investors ready to build.
Investor Benefit: You don’t need to have all the capital upfront—you just need a solid plan and a financing partner who believes in your deal.
Why Private Lending Changes the Game
Private lending is built with investors in mind. Instead of rigid “one size fits all” banking models, lenders like FACo design products around how investors actually do business.
- Speed: Close faster and stay competitive.
- Flexibility: Loans structured for flips, rentals, portfolios, or new builds.
- Accessibility: Underwriting based on property performance, not just borrower income.
- Scalability: Finance multiple properties and build your business systematically.
This is why private lending is a game-changer for both new and seasoned investors—it’s financing by investors, for investors.
How FACo Helps You Start Investing
At FACo, our mission is to make real estate investing achievable for anyone serious about building wealth. Whether you’re buying your first rental, flipping your third property, or scaling into a rental portfolio, we have financing options to meet you where you are.
- Fix & Flip Loans for rehab and value-add projects.
- Single Rental Loans and Rental Portfolio Loans for long-term holds.
- Ground-Up Construction Loans for investors ready to build new.
With FACo, the process is clear, the products are investor-focused, and the opportunities are closer than you think.
Practical Steps to Make Real Estate Investing Even More Accessible
Understanding that private lending makes investing easier is only the first step. To maximize your chances of success, you’ll want to prepare strategically before applying for financing. Here are practical moves every new or growing investor can take:
1. Define Your Investment Goals
Before approaching any lender, clarify what you want from your investment:
- Are you flipping properties for short-term profit?
- Do you want rentals that generate steady cash flow?
- Are you building long-term equity through ground-up construction?
A clear goal helps your lender match you with the right loan product, saving time and avoiding mismatched financing.
2. Organize Your Financials and Entity Structure
Even though private lenders don’t scrutinize personal income the way banks do, it’s still important to present yourself as professional and organized.
- Set up an LLC or entity to purchase property under.
- Open a business bank account to keep funds separate.
- Prepare a simple track record or resume of your experience, even if it’s just one or two deals.
This not only streamlines underwriting but also shows lenders you’re serious about growing as an investor.
3. Run Your Own Numbers First
Don’t rely solely on the lender to tell you if a deal works. Evaluate the property yourself:
- Estimate ARV (After-Repair Value) using comparable sales.
- Calculate DSCR (Debt Service Coverage Ratio) by dividing projected net operating income by expected debt service.
- Build a rehab budget with room for contingencies.
When you can walk into a lender meeting with realistic numbers in hand, you stand out as prepared and credible.
4. Build Relationships With Contractors and Property Managers
A great property is only as profitable as the team managing it. It’s important for investors to think through their execution and minimize risk via:
- Reliable, licensed General Contractors for renovations and builds
- Rental Property Managers if not self-managing
- Realtors or leasing agents for tenant placement
Having this team in place prior to seeking financing can greatly shorten timelines and boost your lender’s confidence in your project.
5. Choose a Lender Who Specializes in Investors
Not all lenders are created equal. Working with an investor-focused lender like FACo gives you access to products built around your goals—not consumer-focused mortgages. A good lender understands:
- Fix and Flip timelines.
- Cash-flow underwriting for DSCR loans.
- The importance of fast approvals in competitive markets.
Pro Tip: Establish a relationship before you need funding. A short discovery call or pre-approval can put you in a stronger position when the right deal comes along.
6. Think Beyond the First Deal
Many investors enter the market thinking about just one property. But real estate success comes from repetition and scalability. By planning for your second and third deals upfront, you’ll approach financing with a long-term mindset.
A lender who understands your growth goals can help map out a funding strategy that keeps your capital moving instead of being tied up.
Why This Matters: These steps aren’t about adding hurdles—they’re about empowering you to succeed. By taking small but intentional actions before applying, you’ll discover that real estate investing isn’t just accessible—it’s achievable, repeatable, and scalable.
Final Takeaway
Real estate investing may feel intimidating from the outside, but in reality, it’s more accessible today than ever before. By working with a lender who understands investors—and prioritizes property performance over personal income—you can unlock opportunities you never thought possible.
With the right financing partner, you don’t just gain access to capital—you gain the ability to build a business, a portfolio, and long-term wealth.
At FACo, we’re here to prove that real estate investing isn’t reserved for the elite. It’s available to anyone with the vision, determination, and the right partner at their side.
