Invest In Real Estate Without Income History (DSCR Loans)
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- เผยแพร่เมื่อ 15 ก.ย. 2024
- In this video, we'll be discussing Debt Service Coverage Ratio loans, or DSCR loans, and how they can scale your real estate investment portfolio.
DSCR loans might be easier to qualify for, but they can be confusing if you don't know how they work.
In the past, I originated millions of dollars of DSCR loans and know exactly what lenders are looking for to help you get the best rates!
In this video, I'll explain how DSCR loans work, why you'd want one, and what you can do to get the best rates.
✅ Get a quote from Conventus Lending: cvlending.com/sean
If you let them know that you came through this video, they'll even give you a discount on your processing fees!
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*Please note that the information in this video is for educational and entertainment purposes only and should not be taken as financial or investment advice. Any investments or financial decisions you make based on the information in this video are at your own risk. The links in the description above may include affiliate commissions or referrals, and I may receive compensation from partner websites. The information in this video is accurate as of the posting date but may not be accurate in the future.
✅ If you are looking for a DSCR loan then you can fill out this form and a Conventus team member will reach out to help you
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Hey Sean thanks for all the great videos, I am 15, been working since I was 14, have been investing 25% of every check, and I am hoping to buy a fourplex when I turn 18 and renting 3 of them out, living in one and I love your videos they help me learn all the things I need to learn, so thank you so much for your videos!
Wow! You started early and it’s nice to have a solid plan. Keep on learning and grinding! ☺️
Hey Sean, may I ask is your masterclass available for kids? I’m twelve 😅 thank you❤ love your vids
You'll learn a lot from it but you probably won't be able to do anything with that information just yet!
The best video explaining DSCR loans that I've found on TH-cam!! Great job.. I've subscribed.
Actually just spoke with a lender yesterday to do a DSCR loan for the first time and I decided to do the 5 year prepayment on a property that I'm refinancing out of a bridge loan now. Your info helped me to see that this was a great choice. I was very concerned about going this route instead of a bank, but the bank can't/won't do the loan. So glad for this option!!
Keep making great informational videos.
Thanks so much!!
Glad it was helpful! Welcome to the channel ☺️
@@seanlovesrealestate Thank you. I already settled on that property with a fixed 30yr DSCR loan a few weeks ago. Very happy with how that went.
A friend of mine found the information for DSCR Loan... Didn't know this existed... Thank you for the information. Stay blessed
Thanks for watching!
Great video, DSCR loans are one of the most useful tools for investors who want to grow their portfolio and dont want to deal with the hassle of producing all their personal financial statements etc
Thank you for watching and the feedback. ☺️
Absolutely! @@seanlovesrealestate
You are the legend I wanna get into real estate too but my parents are strict and I am only 10 years but I hope I sudsed like you!
Succeed sorry missclick😊
Keep on learning while you’re still young! Appreciate you watching ☺️
great video! been in RE for 3 years and want to start using DSCR loans
Thank you! Best of luck on your real estate journey ☺️
18% mortgage rate over here in Uzbekistan only for newly built homes or 25% for a secondary home, basically im screwed either way.
Uzbekistan has high rates and the minimum down payment over there is 15%. Its a developing country so in order to win in my situation is to partner with a investor, but there is a problem im turning 19 this year and there is no way i can convince my parents or someone elderly to follow through, yet all this wont stop me and i will push through and win my FREEDOM.
That’s so high! Anyway, keep on grinding and don’t let it stop you achieving your goals! Best of luck!
Will do!
DSCR Loans are best used for new investors looking to do duplexes. triplexes and quadplexes
Thanks for making these videos! I'm 25 now and would love to be where you are at one day ❤
No problem! Keep learning and best of luck on your journey! ☺️
Show me how please, I'm looking to buy in September/ October 2024
Hi can you start with DSCR loan and refinance into a conventional loan? If the property is a duplex? Already turn key and tenants in there
Do those dscr loans show up on my credit report snd should my student loans bevpaid off or bankruptcy is better to have clean slate?
how do you feel about section 8 investing?
Depending on the market, Section 8 tenants can be better than regular ones!
Is it better to get a conventional loan for investing for long term rentals? I have random jobs and no two year history Any way to get into the house at 3.5 percent down
Great video!!! ❤
Thank you!
Wow this video was golden!
Thanks for watching!
Question: 1 of my property has more than 1.15 positive cash flows, but my other properties have negative cash flow. Will I get denied if I apply for the positive cash flow property's DSCR loan?
DSCR loans are done on a per-property basis. The lender usually won't care about the other properties in your portfolio if it's not related to the loan.
Great video! Thanks for sharing!
You’re welcome!
Hi I love these vids. I bet you made atleast one person Rich
Thank you! ☺️
For how long I can do a cash out refi after I purchase a fixer upper ???
They usually have seasoning periods of 6 months before you can refi, but it depends on your lender!
Can i get this without a current job but a job offer
Hey sean im 15 and im looking into real estate can you give me any tips
That's awesome! Look into saving and increasing your credit score as much as you can before you turn 18.
Love the videos just a little to fast
Thank you! I’m working on that! ☺️
Can llc hold a dscr loan? If dscr loan is based on rent roll, is the qualification for loan available when you identify the property?
Yes, that's one of the benefits of getting a DSCR loan. LLCs can get the loan directly, unlike conventional mortgages.
Also, yes to your second part. You can get prequalified for a certain amount based on your savings and credit score (so you can go shopping), but ultimately, the loan will be approved based on the property itself.
Can dscr loan been used on property in another state?
Why not
Yes!
Is there a limit to how many properties you can refinance out of a DSCR loan into a conventional loan?
Yes, it's typically 10 but again, it depends on the lender and how you structure your entities.
Greetings, can I get a DSCR loan for an overseas property?
I don't think they offer that for overseas properties
If you have a partner where you both own an LLC. Do they take the average of both your scores? How does that work?
At my old company, they would take the lower, middle score between the two. So if your TransUnion, Equifax, and Experian scores were 710, 770, and 730, you would be priced at a 730. If your partner's middle score was 690, then as a group, you would be priced at 690.
Hi Sean. I live in East Coast Florida.
I am finding extremely difficult to buy ( i known the market situation) but its kinda hard to believe I CANT buy anything in Florida. Ive been turned down couple times. But life charged for better and still not able to "afford it " to buy, at least is what ive been told by a realtor/broker.
I have a pretty stable job $76000, 805 credit score, car paid off. No student loans, no morgate and first time buyer. What am i doing wrong? Love love love your vids and have learned alot with you.
that crazy , you might have to join a class
Are you looking for a 2 million dollar house? 😂
I think you can find deals if you don't look at the major cities in FL (i.e. Jacksonville, Orlando, Miami, etc). Are you looking for a rental or your primary residence?
@@seanlovesrealestate primary.
I want too buy a four plex worth 1 million. In the DC area, my credit 710 and i have the 20% down. But my income and my two other rentals would make the bank only qualify me for less than that amount i have 6 months of reserves..my question is do you think i should go with a DSCR loan? Your thoughts would be helpful
I think DSCR loans require 25% down for multifamily properties. The interest rates are higher too, so only do it if the numbers work for your deal!
shouldni not do a cash out refinance in general with a dscr loan? im wanting to use a heloc to fund a down payment and i need the cash out refinance for my exit strategy i dont need it right away i want a somewhat long term investment property to rent out but depending on what i am offered i will cash out refinance on the very last year of the point system to pay off my heloc any advice eith this strategy would be helpful from you or anyone else in the comments
Yes it's doable, just be aware of the seasoning periods that most lenders have. The seasoning period will affect how much money you can cash out based on how long you've owned the property!
Still need 20 % right ?
Unfortunately yes, sometimes even 25%!
@seanlovesrealestate yew that's a big drawback I have good credit but not much capital how can I get into real estate investing leverage debt OPM
@@WallStreetIceCreamI wonder if you can get a personal loan for that 25% before getting the DCR loan..?
Also what is the best job for money if I’m passionate about any job that has something with math or science
That sounds like an engineer in the making! I studied electrical engineering but computer science degrees seem to make the most at the moment.
@@seanlovesrealestate I figured because I did research and found out that a doctor or engineer are problem the best for science and math realted ones
Also is computer science for software engineers like what engineers can they be
Thanks my g !
No problem! ☺️
Why nobody really talks about the down payment requirements on these loans
I mentioned it here, but it's usually 20% down for SFR and 25% for multifamily!
What is your minimum loan amount?
It was 75,000 per property at the time but we only did that on special occasions. The typical minimum is $100,000.
What jobs are good to start investing
I started as an engineer, but really, any job that can give you enough to support your lifestyle while also enabling you to save and invest is good. Obvious synergy jobs would be a real estate agent or mortgage loan officer since it'll give you experience with the market and getting financing on your deals. Good luck!
Is there any way a veterans COE can be used with a dscr loan? Sorry if that’s a dumb question😂😅
This is a great question!VA loans are separate from DSCR loans and your COE won't have any effect on your ability to get a DSCR loan.
Hey Sean, how can I get the 20% down for the DSCR Loan?
Look for single family properties that cashflow!
Can a DSCR Loan be used on a foreign property like a condo in Mexico to rent out on Airbnb?
Typically not, but it depends on the lender.
@@seanlovesrealestate bummer. thanks for the info! I'll have to look into it
Can you use business credit
We used personal credit at the place I used to work at
LOVE your Instagram channel!!!
Thank you!
👍 Thanks!
Appreciate you watching! ☺️
For dscr loans do they need to use your SSN?
Yes, they pulled your personal credit
Hi
Hey!
Anybody ever used a HELOANS?
HELOCs?
Do you need a real estate certificate to do real estate if not what is it for
You don't! I'm not sure what a real estate certificate is, but a real estate license is if you want to help other people buy and sell homes.
Can you rent the same investment property lol ?
I think there's a clause that says that the owner can't rent the home if it's under a DSCR loan.
This an ok finance strategy but NOT THE BEST WAY TO FINANCE. They charge too much fees, points, high down payment, high interest rates. Is not my first go to for sure. But is an option
So what would you suggest?
Seriously
Let me ask: is this a great last resort for people with no other options? Say I have a 780 credit score but they are maxed (no lates or bad marks though). Could I get one for a purchase to create rental property after purchase? 0 down?
Sean im new to real estate, if you put down 20-25% on a duplex how long is the lease for. Is it 6 months on that one time payment or?
Thanks for the question! I think you're getting a bit mixed up with the terminology. If you put down 20-25% down on a loan, your mortgage term length will usually be 30 or 15 years, depending on what you want. A lease is how long a tenant will rent out your place for and those are typically 12 months at a time.
The 6 months in reserves is not a one time payment, but a bank account check that the lender will do to see if you have enough money in case of an emergency (job loss or vacancy). Hope this helps!