The DSCR Rental Property Cash Flow Loan might be a terrific solution for you.
Have you sat on your couch thinking about how you can gain financial freedom without increasing your work obligations? Consider investing in real estate as the method to receiving long-term residual wealth? Ever wonder how an associate or neighbor could afford to own one or more rental properties when they make similar income from their job as you? Once you learn more about our DSCR loans, you can feel confident that you could become an owner of an investment property and begin making exponential income soon. The DSCR loan allows investors to purchase a property based on the property’s potential income. That’s right, POTENTIAL income. Qualifying is even easier with this DSCR loan because all you need is an average credit score, capital, and the right property. You no longer need to hassle with documentation proving how much you make or how much debt you have (unlike traditional or owner-occupied financing options). Hassle free, smart, and faster financing is available for investors.
So, What Exactly Is A DSCR Loan?
Well, we are glad you asked. DSCR stands for Debt-Service Coverage Ratio and is a calculated number that determines the likelihood of the guarantor (Investor) to repay the loan. The calculation is frankly quite easy, but you first need to know two factors, the estimated monthly rental potential, and the estimate total monthly mortgage payment of the home. You will take the estimated monthly rent divided by the estimated total monthly cost of ownership to determine the DSCR percentage. Most lenders are like the investors, they want the income to exceed cost so that the investor makes a monthly profit. The ratio the lenders desire is 25% greater than the cost. This is displayed in the following ratio format. 0% profit is considered a ratio of 1.0 which equals a 1 to 1 ratio. 1.25 = 25% more than breaking even. Check with our firm to determine if a property is right for you.
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Why Choose A DSCR Rental Loan For An Investment Property?
Well, we are glad you asked. DSCR stands for Debt-Service Coverage Ratio and is a calculated number that determines the likelihood of the guarantor (Investor) to repay the loan. The calculation is frankly quite easy, but you first need to know two factors, the estimated monthly rental potential, and the estimate total monthly mortgage payment of the home. You will take the estimated monthly rent divided by the estimated total monthly cost of ownership to determine the DSCR percentage. Most lenders are like the investors, they want the income to exceed cost so that the investor makes a monthly profit. The ratio the lenders desire is 25% greater than the cost. This is displayed in the following ratio format. 0% profit is considered a ratio of 1.0 which equals a 1 to 1 ratio. 1.25 = 25% more than breaking even. Check with our firm to determine if a property is right for you.
You Can Complete The Loan Under An LLC Or Entity
We strongly encourage and even some lending solutions we offer require the Individual obtaining the loan to set up a business and complete the financing through a business. The additional protection it provides the Investor over their personal assets is a huge advantage. Speak with someone at our firm to gain additional understanding and information on the benefits of a business owning the investment property or how to create a business.
Opportunities Are Endless With The DSCR Loan
You can obtain an unlimited number of properties using the DSCR loan program. They are not backed by the government so you are not restricted or limited on the number of properties you can own. Your future can be abundant with owning and renting various properties out for a profit. When you own 4 or more, we can refinance them through a portfolio (blanket) loan and move them into one payment for simplified accounting. Interested to hear more? Contact our firm to discuss in detail a plan and strategy for building and expanding your real estate empire.
Less Documentation And Data Is Required
Chances are, you have gone through the traditional financing process of obtaining a mortgage on a home you own. You had to supply the lender a large amount of documentation and personal information as you went through the process. With the DSCR rental loan, the financing process is simplified and there is less documentation and personal information required. You won’t need documentation for income, employment, or debts. The documentation needed is short so it allows for the financing timeframe to be quick.
Refinancing And Cash-Out DSCR Rental Loans Available
The DSCR rental loan also works on investment property already owned by investors. You can refinance into the long-term rental loan and even cash-out equity to purchase more investments. We highly recommend this strategy to all clients and encourage them to refinance out of short-term bridge loans into the long-term financing rental loans. Utilize our fix and flip loan programs and instead of selling the newly renovated property, keep it as a rental home with our DSCR loan product so you can receive monthly income from the home. Reach out to learn about our BRRRR strategy and build a legacy for you and your family with this strategy.
