Deandra McDonald overcame repeated lending rejections to build a multifamily portfolio exceeding 10 units across Virginia. Her path reveals how unconventional financing strategies and persistence unlock deals when traditional bank loans fail.
McDonald initially faced denials from conventional lenders, a common barrier for newer investors lacking institutional track records. She shifted tactics by combining house hacking (living in properties while renting units) with FHA financing, which allows lower down payments and accepts less-seasoned investors. This approach provided both cash flow and equity growth simultaneously.
As her portfolio expanded, McDonald leveraged seller financing to close deals conventional lenders wouldn't touch. She negotiated directly with property owners willing to carry notes, bypassing bank underwriting entirely. This strategy works best in Virginia's smaller markets where owner-financed deals surface more readily than in major metros.
Joint ventures became her third pillar. McDonald partnered with other investors and lenders, pooling capital and expertise to access larger multifamily properties. JVs distribute risk and unlock buying power unavailable to solo investors, particularly those with limited liquidity or credit history.
Her long-term rental focus compounds wealth without requiring constant deal activity. Multifamily properties generate recurring income while appreciating, creating leverage for future acquisitions.
For other Virginia investors facing rejection, McDonald's playbook offers clear lessons. Build credit and proof of income before approaching banks. Start with house hacking on FHA loans to establish a track record. Network aggressively to find seller-financed deals and JV partners. Once you own two to three properties, conventional lenders become more receptive because you have documented rental history and equity.
McDonald's success hinges on rejecting the myth that banks are the only path to multifamily investing. Owner financing, FHA programs, and partnerships exist specifically to serve investors traditional lenders overlook. Virginia's diverse real estate market supports all three