All Forum Posts by: Mark Munson

Most DSCR lenders that offer blanket loans allow for Partial Release Clauses, the payoff is typically 120% of the valued portion of that asset being sold. With more inexpensive properties, you are better off blanketing them as the value requirements for each asset drops, as opposed to do them individually. For example, one lender we utilize drops their minimum property-level loan amount to $50,000, instead of $67,500 on a single asset.

I would bring on a credit partner that owns at least 25% of the company and have that reflected upon your Operating Agreement. Assuming the individual has credit above 680, there are lenders that you can qualify with that won't look at bank statements. So if liquidity is also an issue or you want to avoid sourcing and seasoning funds, that would be your best approach. DSCR lenders will still look at your credit score, albeit there may be a minority that don't. Most do because Wall-Street wants a certain score and they are the ones buying these notes.

If you buy another asset around the same price or any other more expensive residential asset, you can cross-collateralize them and then the DSCR min. loan amount wouldn't apply. Minimum property value in a cross-collateralized DSCR go as low as 50k, which would work. If you don't have another asset, then maybe buy it in a a bridge for the time being and then refi it with your next purchase, basically blanketing them together directly into a DSCR loan at that time.

These templates should cover everything you need to supply to get a term sheet:
Short Term Financing Quote:

Company Name (LLC/Corp):
Individual Name:
Property Address:
Purchase Price (if applicable):
Current Value:
Payoff Amount (if a refinance):
Rehab Budget (if applicable):
After Repaired Value (if applicable):
Estimated Liquid Cash Reserves:
Estimated Credit Score:
Fix & Flip Projects Completed (Last 24 Months):

Long Term Financing Quote:

Company Name (LLC/Corp):
Individual Name:
Property Address:
Transaction Type: Purchase or Refinance
Owned Less than 4 months? Y or N?
Purchase Price:
Current Value:
Payoff Amount (if a refinance):
Estimated Liquid Cash Reserves:
Estimated Credit Score:
Number of Rental Properties Owned:

Fix & Flip Projects Completed (Last 24 Months):
Property Leased (Y/N):
Lease Amount:
Lease Term Length:
Annual Taxes:
Annual Insurance Amount:
Monthly HOA Fee:
Loan Amount Requested: