Besides identifying great real estate investment opportunities for our clients our mission is to find optimal financing options that increase cash flow and maximize tax deductions.
Savvy investors require loans that often require creative thinking. This can be due to more unique property types, loan amount size, income complexity or sometimes
DSCR Loans
A DSCR loan offers a viable option for purchasing a house even with low or no income. This type of loan falls under the category of Non-QM (Non-Qualified Mortgage) loans designed specifically for real estate investors. The uniqueness of a DSCR loan lies in its ability to assess a borrower's repayment capacity without relying on traditional income verification methods.
As part of the broader spectrum of Non-QM loans, a DSCR loan provides potential borrowers an alternative financing avenue, eliminating the need for conventional income verification processes. This type of loan proves advantageous, especially for showcasing rental income that may not be reflected in tax records due to legitimate business expense deductions.
Unlike traditional loans that depend on pay stubs or W-2 forms, which many real estate investors may not possess, a DSCR loan considers the cash flow generated from investment properties. Lenders utilize the Debt Service Coverage Ratio (DSCR) to evaluate whether a borrower can comfortably meet their monthly loan obligations.
The nature of property-related deductions often reduces taxable income, creating a challenge for investors to demonstrate their actual earnings. DSCR becomes instrumental in such cases, providing lenders with a more accurate picture of a borrower's financial capability to make consistent loan repayments.
Other types of loans
While DSCR Loans prove advantageous for real estate investors, it's essential to acknowledge that they often come with higher costs. Consequently, we explore a range of alternatives tailored to each client's specific circumstances.
Our network of lending partners extends options such as bank statements loans, profit and loss loans, 1099 loans, VOE loans, and even no income loans. These diverse offerings cater to both homebuyers and investors, allowing us to tailor financing solutions to individual needs.
In our quest for optimal financing, we meticulously consider various factors, including tax benefits, the purpose and term of the proposed investment (e.g., flip or long term), and the current performance of the investment portfolio, among others. It's crucial to understand that recommending the most suitable loan necessitates a comprehensive understanding of the broader financial landscape.
We recognize that each client's financial situation is unique, and the ideal financing solution hinges on a thorough examination of the bigger picture. By taking into account a multitude of aspects, we can guide our clients toward the most fitting loan option that aligns with their goals and financial circumstances.