Lesson 1 - Why Pre-Approval is Your Superpower

Hey, it’s Seth - welcome to Module 2 of The 5% Down Blueprint!

Last module, we built your financial foundation. Now, we’re getting you pre-approved for your first duplex or multifamily.

I used this exact process to lock in a $200,000 loan with just $15,700 down.

Today, I’ll show you how to get your pre-approval letter in 7 days or less. Let’s go!

LESSON 1: Why Pre-Approval Is Your Superpower

Realtors usually won’t show you properties without a pre-approval letter - it’s your golden ticket.

It tells you:

• How much you can borrow

• Your exact down payment (5% or 3.5% or 0%)

• Your estimated monthly payment

My pre-approval showed I could buy up to $300,000 with 5% down. That’s how I targeted $200k-300k duplexes.

Why Owner-Occupied (2-4 Units) vs Investment Loans (5+ Units)

Here’s the key difference:

• Owner-Occupied (you live in 1 unit) → 5% down (or 3.5% with FHA or even 0% down in some cases)

• Pure Investment (you don’t live there) → 15–25% down, most likely 25% down

• Commercial (5+ units) → Different rules, variable rates, commercial loan (Different Course)

Stick with owner-occupied for your first deal—it’s how I house-hacked and lived rent-free, keeping $14,400 in my pocket in rent savings my first year!

Action #1: Find your Max Loan Amount

Use your income and expenses from the P&L lesson and use the Max Loan calculator. Download Below.

Want to talk more about the financing part of the 5% Down Blueprint? Book a 15 minute strategy call!