Hi Jeff, thanks for dropping another gem! I have 2 questions regarding the fix and flip product that you mentioned in the example. Is that a completely different loan? If so, is this correct below? Ex. 200k property Loan 1: 200k DSCR loan with 20% down (40k) Loan 2: 40k Fix and Flip Loan with 20% down (8k) New Appraisal: 300k ARV Loan 3: 300k DSCR Cash Out Refi Take out up to 225k Pay off remaining 32k of the Fix and Flip loan Pay off remaining 160k from the first DSCR loan Use the remaining 33k to do this all over again on a new property or put it into your savings.
What if the property is mixed use with one residential unit above a store? Is it better for me to run my business and live above or live above and rent the store?
Better the credit better the terms! I didn't you say in a previous video credit had nothing to do with this type of loan. I thought DSCR loans are solely based on the potential cash flow of the property?
Use hard money/private money to buy/rennovate the property. This is short term money. Then, the exit strategy is to either sell the property or refinance into long term debt like a dscr loan. 👍
Are you able to purchase a rent ready property that isn't updated, with a dscr loan... rehab with your own money, then cash out refinance? Thanks for your content
@@neerajchaudhary1821 $200k purchase, 20% down ($40k), $40k rehab budget, $300k ARV. This is just an example with easy numbers. Each scenario will vary.
Interested in a DSCR loan? Lets jump on a call: calendly.com/jeff-trevarthen/15-min-call
Appreciate your videos man, very informative, thank you. I’m starting to dive into DSCR loans and learning as much as I can.
Glad to hear it! Happy to help if I can.
Awesome content!
Appreciate it!
Like your work
Thank you!
I thought normally when you cash out refinance a home after renovations you can take 100% of the profit?
No cash out will only allow up to 75% of the ARV.
Hi Jeff, thanks for dropping another gem! I have 2 questions regarding the fix and flip product that you mentioned in the example. Is that a completely different loan? If so, is this correct below?
Ex. 200k property
Loan 1: 200k DSCR loan with 20% down (40k)
Loan 2: 40k Fix and Flip Loan with 20% down (8k)
New Appraisal: 300k ARV
Loan 3: 300k DSCR Cash Out Refi
Take out up to 225k
Pay off remaining 32k of the Fix and Flip loan
Pay off remaining 160k from the first DSCR loan
Use the remaining 33k to do this all over again on a new property or put it into your savings.
There's only 2 loans. The fix-n-flip and the dscr take-out. Financing the renovation is part of the fix-n-flip.
What if the property is mixed use with one residential unit above a store? Is it better for me to run my business and live above or live above and rent the store?
Great question! I'm not 100% sure. But probably better to run the business and rent the residential space.
Better the credit better the terms! I didn't you say in a previous video credit had nothing to do with this type of loan. I thought DSCR loans are solely based on the potential cash flow of the property?
Credit still matters anytime your borrowing money unfortunately. 😊
@@JefftheMortgagePro 😊 👍 thanks
I’m confused , are you saying , use DSCR loan to purchase property as well? Or just to refinance after fox and flip?
Use hard money/private money to buy/rennovate the property. This is short term money. Then, the exit strategy is to either sell the property or refinance into long term debt like a dscr loan. 👍
Jeff do I need to open LLC first ?
Yea for this it's beneficial to have the LLC set up.
@ what type of LLC should I open Jeff ? Please guide me thank uoub
Are you able to purchase a rent ready property that isn't updated, with a dscr loan... rehab with your own money, then cash out refinance? Thanks for your content
In theory, yes, but remember, dscr loans have prepayment penalties, so you'd need to cautious of that when refinancing.
thank you!
can you pair this with an FHA loan as well?
Unfortunately no. Fha is for owner occupied primary residence only.
What type of loan do get at first
I get you then cash out refi into Dscr
But what type at first
It's a bridge loan, or hard money, or fix-n-flip. Short term financing. Then you refi into the dscr for more permanent financing.
@@JefftheMortgagePro could we hop on a call
@@Nickingramm sure! calendly.com/jeff-trevarthen/15-min-call
Jeff i want to do this in 2025!!!
Let's do it!
Hey Jeff, any experience with Canadian buyers?
Yes I should be able to help.
Doing a Irrrl dual military but were both on the loan. Im the primary but my wife is disabled through the va. Can we get the 0.5 fee waived?
Yes absolutely
What are your rates on say 100k dscr loan?
Great question! There's A Lot that goes into that, but I'm seeing high 6's, low 7's in a lot of instances.
Are you licensed in Mississippi? How can we communicate?
Unfortunately, I don't have Mississippi in my toolbox yet for the Fix-n-flip.
In your example, purch is 200k, but what is the rehab budget? Did I miss something?
$40k rehab.
@@JefftheMortgagePro thanks I guess I missed that part. So a 40k rehab means total investment of 240 and assuming 20% down, that’s 48k down.
Thanks!
@@neerajchaudhary1821 $200k purchase, 20% down ($40k), $40k rehab budget, $300k ARV. This is just an example with easy numbers. Each scenario will vary.
Ok sorry for the confusion, I am still getting familiar process. Thanks!
@jeffthemortagepro do you have license in Georgia?
Are you licensed in Texas?
Yes absolutely. 😀
Do you do commercial dscr? I’m in gulf shores Alabama
Yes my team and I can help. :)
Jeff I’m trying to email you but it says your email address is not correct