Quick recap: DSCR loans qualify based on the property’s rental income + your FICO (and sometimes your experience). ​ Here’s the tricky part… Most DSCR lenders finance 1–8 unit rentals. Assisted living and sober living properties are usually classified as “mixed use” → commercial. ​ 👉 Good news: we work with lenders who DO allow DSCR loans on commercial properties. ​ But here’s the catch… ​ Lenders only look at the real estate value (the property). ​ They won’t include the business value in their appraisal. ​ Example: One of our appraisals came in at $400K with business included. The lender adjusted it down to $360K for property only. That’s a $40K difference—and it matters. ​ Key takeaway: DSCR = asset only (the property). SBA = property + business. ​ If you’re exploring Assisted Living or Sober Living with DSCR financing, know the difference before you get surprised at closing. ​ Have DSCR questions? I’m here to help!

Firstly, we are moving on up in the world!! It is incredibly exciting to take the leap and hire out! Our focus with our virtual assistants is to make our loan processes flow as smoothly as possible—bringing our borrowers ease during what is usually a stressful situation. So far, I have gained insights on 3 things: 1.) While training can take up a majority of your days, these should be a ONE-TIME occurrence. This can involve recording your training for future reference and hires. 2.) Hiring experienced people in the field saves you SO MUCH TIME. You don't have to give a job to your best friend just because it's the role of "an assistant." These roles are still crucial for your business, and someone knowledgeable in the space can 10x your business quickly. 3.) Make sure to not work your team to death! Just as you should take breaks throughout the day, so should they! Rest your eyes. Eat. Reset. What have you learned when you started hiring out?

Are we over the DSCR fad? Nope! Here's why I told them to go with a CONVENTIONAL loan over a DSCR: 1. They qualified for a conventional! Conventional rates are lower than DSCRs by 1-2%. If you're buying a property, every penny counts, You're not just building your portfolio, you are running a business with each new rental. 2. I want people to be Successful in their investment journey While I hope that journey involves our collaboration it isn't right to push onto someone something that is not in their best interest. BUT HERE IS THE KICKER! Conventional loans limit investors to 10 properties. So we will be working together sooner or later! In the meantime, I will point them in the direction best for their growth and goals.

When you refinance a rental, your interest rate can go up — and many investors are totally fine with that. Here’s why: They’re pulling out tens of thousands of dollars in equity to buy more real estate. Here's my breakdown 👇 Most investors aren’t trying to build wealth one rental at a time over 10+ years. They want to scale now — and waiting on rental cash flow to save up for a down payment? That could take forever. Even with a solid W-2 income, it can take months to stack enough for another purchase. That’s why many investors leverage the equity they’ve built and do a cash-out refinance — even at 7% or higher. Why? Because turning $50K of locked-up equity into another income-producing property is worth the trade-off. They’re doing this in two main ways: 1. Refinancing long-held rentals with built-up equity 2. Forcing equity by renovating undervalued properties (more on this soon) At the end of the day, the slightly higher rate is the cost of unlocking capital to scale faster.

*As far as I know at this time* ​- DSCR loans are asset-based loans, yes ​ However, DSCR lenders are utilizing FICO scores, borrower’s experience, and citizenship to weigh the risk factor of the loan. ​ Additionally, though your Credit Score is a consideration in qualification for financing that does not mean it would always be subject to a hard pull when closing this loan. ​ There are several DSCR lenders in the space whom offer Soft Credit Pulls during a DSCR Refinance or Purchase ​ Oftentimes these don’t come with a hit to the rate, as well. ​ This is perfect for investors with big ambitions to grow their portfolio aggressively ​ No waiting to recover your score in order to buy your next rental ​ Share this info for those real estate friends gaining some traction in their journey and help them sky rocket to their goals!