Investment Property Loan

[Cody Cavenaugh]

Hello, i'm looking to get a loan for an investment property in dallas but can't go the traditional route due to too high of a DTI and being a business owner. Any recommendations on how to get funds for property? Currently thinking a DSCR or Private money lender would be best bet. Also if your a private money lender or do DSCR please reach out to me, as I am extremely interested. Thanks

[Chris Seveney]

Quote from @Cody Cavenaugh:

Hello, i'm looking to get a loan for an investment property in dallas but can't go the traditional route due to too high of a DTI and being a business owner. Any recommendations on how to get funds for property? Currently thinking a DSCR or Private money lender would be best bet. Also if your a private money lender or do DSCR please reach out to me, as I am extremely interested. Thanks

If you send me the details I can run it through a company we work with who does a lot of DSCR loans.

[Trey Belmore]

Hi Cody- I am a lender located in Dallas and have several options for your scenario. If you want to message me the details with your contact information I can certainly run some options!

[Brittany Minocchi]

Hi Cody - 

DSCR loans are a great tool in these types of scenarios. No W2s, 1099s, tax returns or paystubs needed, and no DTI calculation. Just need to make sure the property generates enough income to cover the monthly principal, interest, taxes, insurance and HOA (if applicable). Required down payment is typically 20-25% depending on FICO, property type and level of experience.

Feel free to send me some details, I'm happy to discuss or answer any questions you have. 

[Robin Simon]

Quote from @Cody Cavenaugh:

Hello, i'm looking to get a loan for an investment property in dallas but can't go the traditional route due to too high of a DTI and being a business owner. Any recommendations on how to get funds for property? Currently thinking a DSCR or Private money lender would be best bet. Also if your a private money lender or do DSCR please reach out to me, as I am extremely interested. Thanks

Can potentially help - do you have further details on the property? SFR or multi-unit, size range etc?

[River Sava]

Quote from @Cody Cavenaugh:

Hello, i'm looking to get a loan for an investment property in dallas but can't go the traditional route due to too high of a DTI and being a business owner. Any recommendations on how to get funds for property? Currently thinking a DSCR or Private money lender would be best bet. Also if your a private money lender or do DSCR please reach out to me, as I am extremely interested. Thanks

Hi Cody - Seems like DSCR would be a good route to explore. Sending you a dm to chat further. 

[Lucia Rushton]

Quote from @Cody Cavenaugh:

Hello, i'm looking to get a loan for an investment property in dallas but can't go the traditional route due to too high of a DTI and being a business owner. Any recommendations on how to get funds for property? Currently thinking a DSCR or Private money lender would be best bet. Also if your a private money lender or do DSCR please reach out to me, as I am extremely interested. Thanks

@Jason Wray can be a great resource for you. He has provided very creative solutions for my clients currently and in the past. 

[Jason Wray]

Quote from @Lucia Rushton:

Quote from @Cody Cavenaugh:

Hello, i'm looking to get a loan for an investment property in dallas but can't go the traditional route due to too high of a DTI and being a business owner. Any recommendations on how to get funds for property? Currently thinking a DSCR or Private money lender would be best bet. Also if your a private money lender or do DSCR please reach out to me, as I am extremely interested. Thanks

@Jason Wray can be a great resource for you. He has provided very creative solutions for my clients currently and in the past. 

 Cody feel free to reach out would love to have a quick conversation to help.

[Stacy Raskin]

In case helpful some more info on DSCR loans and how rates and terms are calculated:

DSCR loans won't use your income to underwrite the loan.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Here's a bit more in detail about how rates are calculated for DSCR loans:

1. Credit score- the higher the best. 760+ generally gets best pricing for investment property loans with most lenders

2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

I've included an example below to help illustrate this.

So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

See example below:

DSCR < 1

Principal + Interest = $1,700

Taxes = $350, Insurance = $100, Association Dues = $50

Total PITIA = $2200

Rent = $2000

DSCR = Rent/PITIA = 2000/2200 = 0.91

Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

DSCR >1

Principal + Interest = $1,500

Taxes = $250, Insurance = $100, Association Dues = $25

Total PITIA = $1875 Rent = $2300

DSCR = Rent/PITIA = 2300/1875 = 1.23

DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

Happy to connect. I'll send you a message. 

[Jacob Sherman]

Hey feel free to reach out to me with any questions . Lets connect and discuss 

[Colin McMahon]

Hey Cody - I'd be happy to help. I work with many business owners/self-employed individuals and often help them bring down their DTI enough to qualify, however, I also specialize in DSCR loans so feel free to reach out so we can evaluate which route is best for your investment goals.

[Sarah Nouri]

Hi Cody!
A DSCR loan is a great way to get into your next investment property.

A Debt Service Coverage Ratio (DSCR) loan for investment properties is often considered better than a traditional mortgage for several reasons such as: it focuses on the property's income rather than your personal income. A DSCR doesn't require any of those income documentations. This can be advantageous for borrowers who may not qualify for a traditional mortgage based off their personal financials. Also, by using a DSCR loans, investors can leverage their capital to purchase multiple properties, which could potentially accelerate their investment growth and overall financial returns.

Overall a DSCR loan can be a more suitable option for real estate investors looking to expand their portfolios, and maximize their investment returns.

Feel free to send me any details.  I'd be happy to discuss or answer any questions you may have. 

[Tom S.]

@Cody Cavenaugh Just following up, were you able to get a lender for your potential deal? Seems like there were a lot of DSCR loan choices, and how did it go if you went that route?

[Martin Bartley]

Quote from @Chris Seveney:

Quote from @Cody Cavenaugh:

Hello, i'm looking to get a loan for an investment property in dallas but can't go the traditional route due to too high of a DTI and being a business owner. Any recommendations on how to get funds for property? Currently thinking a DSCR or Private money lender would be best bet. Also if your a private money lender or do DSCR please reach out to me, as I am extremely interested. Thanks

If you send me the details I can run it through a company we work with who does a lot of DSCR loans.