You really only need a DSCR loan as an exit strategy from a hard money loan as RE investor. Say you are fix and hold for rental, your income will come from the property.😊
I’ve gotten a couple of these DSCR loans. First off the loan options and terms is lender specific. 100% lender specific. You can get 15 year. 20 year. 30 year. A interest only for 5 7 10. The options are crazy. Each lender can make their own guidelines. 640 credit 620 680. Reserves were 6 months 3 months. Seen both. I’ve seen so many variations. You guys kinda made it sound like this is all that’s available. I have not found a lender that will go lower than 20% down or lower than a 620 credit score. None required tax returns. All pulled your credit.
Great video, DSCR loans are one of the most useful tools for investors that either want to have large portfolios of properties or investors that cant qualify for a conventional loan on an investment property due to their income or debts!
DSCR loans seem pretty cool! It's like finding the right tool for the job. But it's important to remember that not all loans fit every situation. Always talk to a loan officer to see if it's the right fit for you. Don't be afraid to ask questions and get the best advice for your specific needs. 😊
I own one rental property that's a duplex that generates 5700 a month my mortgage is 1940 with 3500 positive cash flow after maintenance. Can I purchase another property with DSCR? I purchased the property for 499k and put down 250k. I have a balance of 240k.
Great information and helped clarify what is included in the DSCR calculation.Howeve, I think at 7:05 that the mortgage backed securities are considered bonds rather than stocks.
So in other words if you have great credit, and great debt to income ratio it's best to go conventional loan. This is more for those who do not want to furnish income and credit score.
I disagree. All my properties are in LLCs and I want to close at time of closing in my LLC so my name is not on the deed and quit claim. DSCR allows that conv doesn't. Also a lot of times lenders have over lays, and using dscr you can remove the loans out of your debt ratio for primary. Also dscr doesn't have a jumbo limit like conventional. A lot of benefits to go dscr which is why you see a lot of investors with great credit, and great income go dscr vs conv. Seller concessions are 3xs more on dscr then conv too.
As a CRE underwriter for a regulated bank, I would caution finding private lenders. There are so many bad actors due to the objectivity of DCR loans and can have very hairy terms.
Do some new in the game find it that lenders are not being honest with you. I've experienced push back when mention a certain product on how i want finance a property and they shut it down and push their certain finance option on my investment. As if they ate getting a certain percentage more for selling it. Anyone feel this from lenders. I feel it hard to find a trustworthy lender. For example one lender was pushing to have the seller put forth concession to buy down the interest rate for the first 2 years and another lender tells me know that's not that's not a good thing right now but that they have another program that's working even better but it seems to be a higher interest rate not making sense so I find lenders not being honest. I'd like to hear some feedback from some guys because I am new doing this
I tried to get a DSCR loan and is more complicated than people think, they need 6 months of reserves and it takes a bit to get approved it's not that easy.
There are ways around the 6 months of reserves and not all lenders require 6 months. DSCR are great for a refi from a hard money loan to hold the property.
DSCR underwriter here. We can do a refinance as long as you own/occupy another primary. We look out for occupancy red flags though. If it appears that you occupy the subject property, we'll deny or counter to an income-based program.
I have several sf rentals in Akron Ohio. Five of them already have dscr 30-year loans serviced by a lender out of Texas. This lender does not have a minimum property value rule. Which is great because Akron properties do not appreciate much, although they have high rent. This lender has temporarily pulled out of Ohio for an undetermined amount of time. So I am looking for a new lender that deals with low value properties. Any ideas? I still have several properties that are owned free and clear. I would like to refi them so that I will have cash to buy more.
So if I’m getting a dscr loan how much down do I need? And let’s say if I’m doing a flip but I want to keep the house and use a dscr loan. Can I refinance into a dscr loan?
@@DavidGreene24 ok. What if I wanted to get a fourplex that already was rehabbed and wanted to get a DSCR loan. Is it 20% down? thanks a lot David. You’ve been a lot of help. And I love your videos and information you give!
@Alexsjusa thanks for asking. I closed on my second property 2 weeks later and signed lease yesterday for tenant on the second property which is a long term rental.... face book market place is golden i had over 57 inquiries for this property In 5 days . Now im looking around for another property limited supplies on markey.hopefully I could find one before year end. 🙏
![เขามัทรี - เอ็กซ์ ศุภกฤต - จอนนี่มิวสิค [ Official MV ]](http://i.ytimg.com/vi/AS9ufKuQIVs/mqdefault.jpg)
I did two loans. Cash flow is crazy. 800 plus 1500 on two properties plus I pull 247k.
What state?
Wonderful! I'm new to RE investing. Retired with limited income, so this answers the debt to income question. Thank you.
You really only need a DSCR loan as an exit strategy from a hard money loan as RE investor. Say you are fix and hold for rental, your income will come from the property.😊
@@itsmebedazzle You could also use it as an acquisition loan to acquire property and even keep as a 30 year fixed product.
@@cjthelender1 I know. I'm a hard-money lender.
I’ve gotten a couple of these DSCR loans.
First off the loan options and terms is lender specific. 100% lender specific. You can get 15 year. 20 year. 30 year. A interest only for 5 7 10. The options are crazy. Each lender can make their own guidelines. 640 credit 620 680. Reserves were 6 months 3 months. Seen both. I’ve seen so many variations. You guys kinda made it sound like this is all that’s available.
I have not found a lender that will go lower than 20% down or lower than a 620 credit score. None required tax returns. All pulled your credit.
And here we sit without 20% down, a 620 score...and zero properties.
@@butchgreene Who was the lender?
This guy Christian at one broker just did the loan for Mr Green for 15% down
@@butchgreenewhat is the hang up ??
Great video, DSCR loans are one of the most useful tools for investors that either want to have large portfolios of properties or investors that cant qualify for a conventional loan on an investment property due to their income or debts!
Dscr is literally the only loan I can do that will allow a 3 month seasoning period as opposed to 6-12. That’s 4 brrrr a year rather than 2 or 1.
But what about the prepayment penalty? Assuming your numbers always workout with that included
How has that affected your debt to income ratio?
What company do you use for the loan?
DSCR loans seem pretty cool! It's like finding the right tool for the job. But it's important to remember that not all loans fit every situation. Always talk to a loan officer to see if it's the right fit for you. Don't be afraid to ask questions and get the best advice for your specific needs. 😊
I own one rental property that's a duplex that generates 5700 a month my mortgage is 1940 with 3500 positive cash flow after maintenance. Can I purchase another property with DSCR? I purchased the property for 499k and put down 250k. I have a balance of 240k.
Great information and helped clarify what is included in the DSCR calculation.Howeve, I think at 7:05 that the mortgage backed securities are considered bonds rather than stocks.
Prepayment penalties are designed to keep you in debt and keep interest payments flowing to the bank.
In some cases you could actually pay a point at closing to get rid of the prepayment penalty.
Exactly government is its own business.
Nobody keeps me anywhere 😂
Super great information! Thanks David & Christian.
Thank you for explaining this! I’ve been needing another route to keep adding real estate properties while my DTI is maxed out.
You guys make me look forward to Monday! Thank you!
So in other words if you have great credit, and great debt to income ratio it's best to go conventional loan. This is more for those who do not want to furnish income and credit score.
I disagree. All my properties are in LLCs and I want to close at time of closing in my LLC so my name is not on the deed and quit claim. DSCR allows that conv doesn't. Also a lot of times lenders have over lays, and using dscr you can remove the loans out of your debt ratio for primary. Also dscr doesn't have a jumbo limit like conventional. A lot of benefits to go dscr which is why you see a lot of investors with great credit, and great income go dscr vs conv. Seller concessions are 3xs more on dscr then conv too.
As a CRE underwriter for a regulated bank, I would caution finding private lenders. There are so many bad actors due to the objectivity of DCR loans and can have very hairy terms.
Cant a decent attorney and a good broker prevent that well enough? I had assumed so...
I will be looking into this product on future deals. Great info. Thank you!
Do some new in the game find it that lenders are not being honest with you. I've experienced push back when mention a certain product on how i want finance a property and they shut it down and push their certain finance option on my investment. As if they ate getting a certain percentage more for selling it. Anyone feel this from lenders. I feel it hard to find a trustworthy lender. For example one lender was pushing to have the seller put forth concession to buy down the interest rate for the first 2 years and another lender tells me know that's not that's not a good thing right now but that they have another program that's working even better but it seems to be a higher interest rate not making sense so I find lenders not being honest. I'd like to hear some feedback from some guys because I am new doing this
Great information, thanks Christian and David
But still require 20 % down payment
20% down and 6 months reserves.
@@koby29956mo reserves for the property you want to buy or for every property you own?
loved this! I was wondering DSCR loans
Only makes sense if its cash flowing ... ALOT
Very thorough and dense: incredible info on the DSCR!!
Beautifully explained… I’m looking to get DSCR loans asap. I’m maxed out on number of conventional mortgages. Do you lend in NC?
Yup, it's a great route for you.
Just the info I was looking for. Tks guys.
I’m a builder and real estate investor would love one of these for a triplex or quadplex
Not a problem.
I tried to get a DSCR loan and is more complicated than people think, they need 6 months of reserves and it takes a bit to get approved it's not that easy.
Was it from a broker or direct?
@@hamsterbrigade a broker, need a decent amount of paperwork and 6 months of reserves that you can’t touch, also 20% down payment.
There are ways around the 6 months of reserves and not all lenders require 6 months. DSCR are great for a refi from a hard money loan to hold the property.
@@MattHall83what are some of the ways??
That is not always the case. Reserve requirements will vary by lender. I have some lenders that do not require reserves.
Do these loans affect your personal credit
My clients love DSCR loans. In Missouri
Excellent information, thanks!
Awesome content:)
If I wanted to build a duplex, what loan would you recommend?
What if you default
How do you check the rent on a property before you buy it?
Check the area to see what rents are going for a similar sized house.
Awesome beard Dave!
Everytime I see Dave with a beard I think 🤔 the wrestler the big show is doing real estate now 😅
The think is where to apply with who. Mosto of the lender I know are not trustable.
Simple!!
Man...can you cover the debt?!
It's not hard people.
Do expenses include HOA fees or just PITI? I have a property that would be 1.13 ratio without the HOA fees but only 0.9 ratio if HOA fees count
Great video!
Is it okay if some of downpayment or reserves are money borrowed from personal loan?
Yes. You can do that.
Yes.
Will this work on properties with 10+ yr modified mortgage loans?
Can you refinance into a DSCR loan from a Owner Financed property or is it for new purchases only?
I’ve never tried that but I wouldn’t see why that would not work given enough seasoning and using a servicing company.
DSCR underwriter here. We can do a refinance as long as you own/occupy another primary. We look out for occupancy red flags though. If it appears that you occupy the subject property, we'll deny or counter to an income-based program.
@@brennenmoloney4736 why's that?? What if it was a owner occupied 4-plex??
Yes, you can.
I have several sf rentals in Akron Ohio. Five of them already have dscr 30-year loans serviced by a lender out of Texas. This lender does not have a minimum property value rule. Which is great because Akron properties do not appreciate much, although they have high rent. This lender has temporarily pulled out of Ohio for an undetermined amount of time. So I am looking for a new lender that deals with low value properties. Any ideas? I still have several properties that are owned free and clear. I would like to refi them so that I will have cash to buy more.
Care to list the name of the company out of Texas?
Great info. Are there pre-approvals for DSCR? How do you use this product in a market where homes are only on the market for a day or two?
Yes, you can get pre-approved for a DSCR. Just put in an offer within that day or two.
I have an apartment complex that I want to buy in Houston. How can I get with you guys?
Does this broker also coordinate private money?
Some brokers do, some don't
Can you use this dscr loan initially and transfer into a conventional or fha loan
Yes. Conventional for sure.
Great information
GREAT video!
Great video!!
Thank you 😊
Will they allow this for Airbnb Arbitrage model if you want to use a loan to help you buy furniture?
You could if you already have the property, have equity in it, and use a DSCR loan as a cashout refi.
Hey, how can I get the 20% down for the DSCR Loan?
Equity from your own home. Personal loan. 401k pull. There's lots of ways
Great episode ! Thank you!
Good Stuff!!
So if I’m getting a dscr loan how much down do I need? And let’s say if I’m doing a flip but I want to keep the house and use a dscr loan. Can I refinance into a dscr loan?
Yes you can. We have a combo of loans to do this-hard money to buy and rehab then refi into DSCR. The BRRRR special.
@@DavidGreene24 ok. What if I wanted to get a fourplex that already was rehabbed and wanted to get a DSCR loan. Is it 20% down? thanks a lot David. You’ve been a lot of help. And I love your videos and information you give!
Usually 20-25% down.@@RoyallKing629
When ya gona talk about all in one loan
Can you use a DSCR loan for a ADU build?
To build the ADU, no. To use on a property that has an existing ADU, yes.
They forget to mention the high interest rate with dscr
They discuss rate differences at 7:50
Interest is currently 7-9% which is pretty close to conventional nowadays.
How much liquid do you need in reserves to be approved?
6 months and you can’t touch it
Some lenders do not require reserves.
Does this cover building loans? I have a lot that I want to build a 4plex on and I need a building loan.
No it does not, you'll need a new construction loan for that. In my opinion, terms are better. Let me know if you have any questions.
Love the DnB intro 👾
Him looking down every 2 seconds is a distraction .
Any lender in VA?
You can find investor friendly lenders in your area for free with Lender Finder! biggerpockets.com/findalender
Will the loan work if you have a fix and flip with no mortgage?
I don’t believe so, you have to have a positive cash flow for you to qualify for a DSCR
Yes, as long as the property cash flows.
Which banks do DSCR loans?
I’d rather you reach out to a trusty knowledgeable lender not a bank. It needs a little creativity and guidance to get the right questions answered.
I’m a Mortgage Loan Originator and we do DSCR loans at Capital Federal. Let’s chat!
I usually enjoy your content but the thumbnails are ridiculous
Lmao😂
❤
small brains like this is why crashes take so long to rebound. Just spoiled middle class person further ruining this market made by the poor
8th
1st
Just send a note to The One Brokerage.
Close on my 1st investment property today 🎉🎉🎉🎉 will be documenting my journey @royaltwinsPropertiesllc
How’s the journey going?
@Alexsjusa thanks for asking. I closed on my second property 2 weeks later and signed lease yesterday for tenant on the second property which is a long term rental.... face book market place is golden i had over 57 inquiries for this property In 5 days . Now im looking around for another property limited supplies on markey.hopefully I could find one before year end. 🙏
@@skylerdeanimator are you documenting your journey on social media?
Wheres your MAGAT gear ?