I did two loans. Cash flow is crazy. 800 plus 1500 on two properties plus I pull 247k.

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.

Wonderful! I'm new to RE investing. Retired with limited income, so this answers the debt to income question. Thank you.

@itsmebedazzle

9 ай бұрын

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.😊

@cjthelender1

9 ай бұрын

@@itsmebedazzle You could also use it as an acquisition loan to acquire property and even keep as a 30 year fixed product.

@itsmebedazzle

9 ай бұрын

@@cjthelender1 I know. I'm a hard-money lender.

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!

I will be looking into this product on future deals. Great info. Thank you!

Just the info I was looking for. Tks guys.

Great information, thanks Christian and David

loved this! I was wondering DSCR loans

You guys make me look forward to Monday! Thank you!

Excellent information, thanks!

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.

@wrt322

9 ай бұрын

But what about the prepayment penalty? Assuming your numbers always workout with that included

@zenlife4736

9 ай бұрын

How has that affected your debt to income ratio?

@MatthewBarchett-qr4nu

6 ай бұрын

What company do you use for the loan?

Very thorough and dense: incredible info on the DSCR!!

Great information

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’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.

@butchgreene

8 ай бұрын

And here we sit without 20% down, a 620 score...and zero properties.

@mike2959

7 ай бұрын

@@butchgreene Who was the lender?

@manleynelson9419

6 ай бұрын

This guy Christian at one broker just did the loan for Mr Green for 15% down

@freedomworks3976

27 күн бұрын

​@@butchgreenewhat is the hang up ??

Great video!!

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.

My clients love DSCR loans. In Missouri

GREAT video!

Awesome beard Dave!

@freedomworks3976

27 күн бұрын

Everytime I see Dave with a beard I think 🤔 the wrestler the big show is doing real estate now 😅

Great episode ! Thank you!

Thank you 😊

Good Stuff!!

If I wanted to build a duplex, what loan would you recommend?

I’m a builder and real estate investor would love one of these for a triplex or quadplex

@cjthelender1

9 ай бұрын

Not a problem.

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.

Prepayment penalties are designed to keep you in debt and keep interest payments flowing to the bank.

@cjthelender1

9 ай бұрын

In some cases you could actually pay a point at closing to get rid of the prepayment penalty.

@cpoppinz12

8 ай бұрын

Exactly government is its own business.

@bernardbarbour

21 күн бұрын

Nobody keeps me anywhere 😂

Beautifully explained… I’m looking to get DSCR loans asap. I’m maxed out on number of conventional mortgages. Do you lend in NC?

@cjthelender1

9 ай бұрын

Yup, it's a great route for 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.

@wakeboarder86

9 ай бұрын

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.

@marthajean50

2 ай бұрын

Cant a decent attorney and a good broker prevent that well enough? I had assumed so...

Will this work on properties with 10+ yr modified mortgage loans?

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

The think is where to apply with who. Mosto of the lender I know are not trustable.

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.

@iheartwindshields9770

2 ай бұрын

Care to list the name of the company out of Texas?

When ya gona talk about all in one loan

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?

@cjthelender1

9 ай бұрын

Yes, you can get pre-approved for a DSCR. Just put in an offer within that day or two.

But still require 20 % down payment

@koby2995

9 ай бұрын

20% down and 6 months reserves.

@nicsworld82

9 ай бұрын

​@@koby29956mo reserves for the property you want to buy or for every property you own?

Will they allow this for Airbnb Arbitrage model if you want to use a loan to help you buy furniture?

@cjthelender1

9 ай бұрын

You could if you already have the property, have equity in it, and use a DSCR loan as a cashout refi.

Can you use this dscr loan initially and transfer into a conventional or fha loan

@tiadeese

4 ай бұрын

Yes. Conventional for sure.

Love the DnB intro 👾

Great video! Is it okay if some of downpayment or reserves are money borrowed from personal loan?

@cominhomewithjohnalan9103

9 ай бұрын

Yes. You can do that.

@cjthelender1

9 ай бұрын

Yes.

I have an apartment complex that I want to buy in Houston. How can I get with you guys?

Can you use a DSCR loan for a ADU build?

@cjthelender1

9 ай бұрын

To build the ADU, no. To use on a property that has an existing ADU, yes.

Does this broker also coordinate private money?

@cjthelender1

9 ай бұрын

Some brokers do, some don't

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.

@hamsterbrigade

9 ай бұрын

Was it from a broker or direct?

@koby2995

9 ай бұрын

@@hamsterbrigade a broker, need a decent amount of paperwork and 6 months of reserves that you can’t touch, also 20% down payment.

@MattHall83

9 ай бұрын

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.

@tylerwright497

9 ай бұрын

@@MattHall83what are some of the ways??

@cjthelender1

9 ай бұрын

That is not always the case. Reserve requirements will vary by lender. I have some lenders that do not require reserves.

How much liquid do you need in reserves to be approved?

@koby2995

9 ай бұрын

6 months and you can’t touch it

@cjthelender1

9 ай бұрын

Some lenders do not require reserves.

Simple!! Man...can you cover the debt?! It's not hard people.

Hey, how can I get the 20% down for the DSCR Loan?

@FlawlessCFO

2 ай бұрын

Equity from your own home. Personal loan. 401k pull. There's lots of ways

They forget to mention the high interest rate with dscr

@kayriciawager8778

9 ай бұрын

They discuss rate differences at 7:50

@cjthelender1

9 ай бұрын

Interest is currently 7-9% which is pretty close to conventional nowadays.

Can you refinance into a DSCR loan from a Owner Financed property or is it for new purchases only?

@MattHall83

9 ай бұрын

I’ve never tried that but I wouldn’t see why that would not work given enough seasoning and using a servicing company.

@brennenmoloney4736

9 ай бұрын

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.

@tylerwright497

9 ай бұрын

@@brennenmoloney4736 why's that?? What if it was a owner occupied 4-plex??

@cjthelender1

9 ай бұрын

Yes, you can.

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

9 ай бұрын

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.

@RoyallKing629

9 ай бұрын

@@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!

@cjthelender1

9 ай бұрын

Usually 20-25% down.@@RoyallKing629

Any lender in VA?

@biggerpockets

4 ай бұрын

You can find investor friendly lenders in your area for free with Lender Finder! biggerpockets.com/findalender

Does this cover building loans? I have a lot that I want to build a 4plex on and I need a building loan.

@cjthelender1

9 ай бұрын

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.

❤

Which banks do DSCR loans?

@galaxygolden

9 ай бұрын

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.

@bonnies4662

2 ай бұрын

I’m a Mortgage Loan Originator and we do DSCR loans at Capital Federal. Let’s chat!

Him looking down every 2 seconds is a distraction .

I usually enjoy your content but the thumbnails are ridiculous

@Davefitz04

9 ай бұрын

Lmao😂

1st

8th

Just send a note to The One Brokerage.

Wheres your MAGAT gear ?

Close on my 1st investment property today 🎉🎉🎉🎉 will be documenting my journey @royaltwinsPropertiesllc

@Alexsjusa

8 ай бұрын

How’s the journey going?

@skylerdeanimator

8 ай бұрын

@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. 🙏

@Alexsjusa

8 ай бұрын

@@skylerdeanimator are you documenting your journey on social media?

Will the loan work if you have a fix and flip with no mortgage?

@wrt322

9 ай бұрын

I don’t believe so, you have to have a positive cash flow for you to qualify for a DSCR

@cjthelender1

9 ай бұрын

Yes, as long as the property cash flows.