The property usually needs to meet a DSCR covenant of 1.2 or 1.25.Community banks kept investors growth alive during the financial crisis as all of the non confirming exotic loan products provided by institutional lenders (typically backed by hedge funds) were pulled off the shelf after the collapse.Now as things have become more normal, non confirming (not fannie freddie) loan products have begun to trickle back into the market place as institutional capital has developed a thirst for yield backed by hard assets like real estate.These DSCR loans you have heard buzzing about are not agency backed products so therefore there is not the hard and fast rules that you see with conventional.

@Ty PrimersYour offer can consist of buying the property subject to the 1st lien mortgage, and either with the seller carrying back a 2nd position mortgage for the difference between the offering price and the down payment plus existing note balance, or a wrap around note carried by the seller with the existing mortgage as an underlying mortgage.Buying ‘subject to’ is a bit exotic these days, especially when a property does have positive equity.

Demand- Either how many rich people $5mm liquid assets, or how many exotic Car motels (similar customer base) are there in the area?

This may involve any number of variations, some are pretty exotic and engineered systems tend to be more expensive.  

If you are an employee with a high and verifiable ordinary income (salary), few if any “deductions” or “write offs” and no exotic investments, you’ll pay the highest tax rate but also qualify for (assuming clean credit) the “best” financing. 

Not own the property or pull off exotic dispositions.  

Additionally, but not to make it more complicated of a discussion, tax issues can arise with equity sharing and improper contingent interest.I might even come close to saying someone who does agree to what, IMO, is a bit egregious of loan terms is likely not a good project to lend on as an undertone of desperate might be at play.There is more of "something" to be said to keep things simple opposed to fancy or exotic capital or finance structures.

Here are a few I like watching:Rahab Addict Flip or FlipFlipping Vegas - though I get tired of the bickering and seeing that every vehicle he drives is exotic!!

The Exotic  Animals section was pretty funny: Tarantulas  Ferrets Skunks Raccoons Squirrels

Darren I saw buyers trying to do these types of deals about 2 years ago.A few happened but then the money dried up or what I have seen happen is the DPA wants to roll in points for borrowing the money and the senior lender on the deal balks and says "now way will we allow that to happen or approve it".I haven't seen one of these go through in years.So I do think it is not feasible at this time.I am talking about commercial real estate not residential.I can tell you that you can find PLENTY of websites out there claiming to be lenders offering all kinds of crazy financing scenarious to fund loans.1.If they want any fees but at closing DO NOT do the deal.2.Do not put up a bunch of earnest money using one of these types of exotic lenders to only have your finance period pass because the lender is dragging you along and then you lose your earnest money or get into a legal battle withe the seller.If you have no money try to wholesale and build up capital first.