Great question! DSCR loans are primarily for residential 1-4 unit properties. Commercial loans are typically for 5+ units. There are some lenders that will treat 5-10 unit properties as a residential dscr, but definitely more restrictive.
Jeff, this video was very informative. My goal is to get a 4 door, multi-family unit as an investment property. I'm interested in building generational wealth for the future. This was helpful in trying to understand the process. As we know capital is always the issue. I've subscribed. Thanks for sharing. 🙏🏘
I would like to contact you for a DACR Loan but I heard you say you only go up to 4 units if I’m incorrect please let me know and I will call you if you can fund higher for multi-family thanks
Great question. It depends on each individual scenario, but sometimes I receive a commission from the lender, and sometimes it comes from the borrower. Just a reminder there is no compensation unless a transaction closes. 😊 Hope that helps.
Personal credit. Even though you can close in an LLC, DSCR loans for residential real estate have to be personally guaranteed. Hence the personal credit. 😀
Everything we are looking at in Chapel Hill to put our 2 college daughters in so their rent can go toward an asset is $400k or more. So that's over $50k as a down payment. What do people do that don't have that kind of money?
I have questions Jeff on a situation my partner and I are trying to make a decision on getting a home we are on a contract with leader to purchase option to buy. Not sure how I could contact someone like you to ask some general questions on a direction to take? If you have time? Thanks in advance!
Having a DSCR loan with payments being 100% interest and also with prepayment penalties means you can’t pay any principal? That seems like an absolute scam in this rate environment unless your cap is over 15%. Even with that, is it worth it with the risk? Can you explain an instance where that is a good idea?
You can always pay down principle with an interest only option. With a pre-payment penalty, you just can't pay off the loan completely during the pre-payment period without penalty.
Have other questions about the DSCR loan? Let's connect: calendly.com/jeff-trevarthen/15-min-call
DSCR
like your video. Before I book call with you just want to make sure you can also do dscr loan in utah.
Yes we can!
What is the difference between dscr and commercial loans?
Great question! DSCR loans are primarily for residential 1-4 unit properties. Commercial loans are typically for 5+ units. There are some lenders that will treat 5-10 unit properties as a residential dscr, but definitely more restrictive.
Hello, what are the credit score requirements? Thank you
Usually 620 or better, but the higher the score the higher the leverage.
Great video man thanks for sharing this helped me understand DSCR loans a bunch
Thank you for the kind words!
Great vid! Thanks~!
Glad you liked it!
Jeff, this video was very informative. My goal is to get a 4 door, multi-family unit as an investment property. I'm interested in building generational wealth for the future. This was helpful in trying to understand the process. As we know capital is always the issue. I've subscribed. Thanks for sharing. 🙏🏘
Thank you. Good luck in your journey! Let me know how I can help!
I would like to contact you for a DACR Loan but I heard you say you only go up to 4 units if I’m incorrect please let me know and I will call you if you can fund higher for multi-family thanks
I've got DSCR loans for up to 10 units and then DSCR for multifamily bigger than that. Reach out to me: calendly.com/jeff-trevarthen/15-min-call
Jeff thank you I will call you tomorrow thanks again.
Jeff it sounds like you shop for loans on behalf of your clients. Who pays for your fees, the lender or the borrower?
Great question. It depends on each individual scenario, but sometimes I receive a commission from the lender, and sometimes it comes from the borrower. Just a reminder there is no compensation unless a transaction closes. 😊 Hope that helps.
When closing with a DCSR loan in an LLC, is the credit score used business credit or personal credit?
Personal credit. Even though you can close in an LLC, DSCR loans for residential real estate have to be personally guaranteed. Hence the personal credit. 😀
Everything we are looking at in Chapel Hill to put our 2 college daughters in so their rent can go toward an asset is $400k or more.
So that's over $50k as a down payment. What do people do that don't have that kind of money?
That's a tough one. Some markets it just doesn't pencil.
You can get a loan from your retirement accounts if you are short on cash
I have questions Jeff on a situation my partner and I are trying to make a decision on getting a home we are on a contract with leader to purchase option to buy. Not sure how I could contact someone like you to ask some general questions on a direction to take? If you have time? Thanks in advance!
Let's schedule a call: calendly.com/jeff-trevarthen/15-min-call
Having a DSCR loan with payments being 100% interest and also with prepayment penalties means you can’t pay any principal? That seems like an absolute scam in this rate environment unless your cap is over 15%. Even with that, is it worth it with the risk? Can you explain an instance where that is a good idea?
You can always pay down principle with an interest only option. With a pre-payment penalty, you just can't pay off the loan completely during the pre-payment period without penalty.
Can I get a DSCR loan on a 12 Flat?
Potentially. Most commercial loans have dscr as part of the qualifications
My house is fully paid off.
Can I cash out with a DSCR loan if I’m living in it.
Unfortunately no. Dscr is for investment property only. 😞
first time buyer I need help
Happy to help.
DSCR