S2025 Ep268: The Rate Update --Multi-DSCR (5-8 Units) Advantage: Qualify Based on What the Property Makes

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Are you looking to grow your real estate portfolio in 2025 without all the red tape?

We might have a solution for you because we're working with investors right now to answer this question.

Are you struggling to secure financing for multi-unit properties?

A lot of people are, so what we're going to talk about in today's video, my solution to this might be the multi-DSCR program

that we're introducing today.

The number one piece of the puzzle that people run into when they're having problems or looking to finance multi-unit properties.

As you guys know, I go to chat GTP to get the answer.

I put that in here and here's what it says.

The most common problem investors run into when financing a four to eight unit investment property is qualifying for the right type of loan.

There's loans that you have out there and there's different types like a one through four family.

You can go with a conventional loan, five plus.

You're going to have to go with a commercial loan.

Let's get over to the diagram I want to show you with the new programs that we have to offer you today.

So here's the programs. If you have a four unit property, well, you might be able to go with a residential loan.

But you just might want to avoid all the red tapes and you might want to close in your corporations name.

You might want to avoid all the tax returns and all the rent rolls and everything you're going to have to produce.

So what I want to introduce to you today is the options we have right over through here.

The multi DSCR program.

So we're going to explain in this video is the loan types that we have over here and kind of the terms on residential, commercial and multi-unit properties.

Because again, the question now is how do you finance a four through eight unit building?

Now let's go down through it with conventional financing that you can finance up to a four unit building and that's okay.

But you have to require tax returns.

You cannot close in an LLC and there's a lot of restrictions when it comes to such as right through here.

Your personal income is going to be used.

There's going to have to be a debt ratio included maximum loan amounts.

You might hit those with FHA and conventional loans.

Normally on investment properties, you can only go up to possibly 80% loan to value, but that rate would be extremely high.

You can go down to credit scores at 620, but again, those are really hard to come by as well.

Loan terms, up to 30 year terms.

Can you cash out?

Well, it depends on what LTV you're at.

Mixed juice allowed?

Absolutely not.

LLC vestings?

No.

Pre-payment penalties?

No.

In closing times, usually within 30 days.

So that's the common conventional loan out there that most people experience.

Now let's get over to the commercial loan because if your property is more than four units,

you're most likely going to have to go to commercial before we introduce this program.

So the commercial loan, here's what you have.

You can go five plus units.

The property has to break down its financials, and you're going to have to give a rent rolls, tax returns, everything else.

Plus the property also has to have a debt service coverage ratio of 1.2 or more.

Okay, so what is debt service coverage ratio?

Well, if you're an investor, you know that.

But we have a program, the multi-use, that will bring you all the way down to a 1%.

So this might save a lot of deals in the making.

Let's go down to max loan amount.

There's really not a max loan here.

It's depending on the bank's underwriting standards.

You can usually go 70 to 75% loan to value.

The minimum credit score on most commercial loans are 660.

And then they really prefer your 700 plus loan terms.

You can go to from five to 10 years and a whole mix of combinations between then.

Cash out?

Well, you can do that, but there's some ramifications from that as well.

You can't have a mixed use property.

This is where we're coming into play with mixed use and units over four units.

Where the mixed use on the conventional, you can't do it.

LLC, very common to close in your company's name.

Pre-payment penalties are common as well.

And it usually takes about 45 days to 60 days to close.

Now let's combine these together with our multi-DSCR program that I want to introduce today.

So here's what it is.

It's not a conventional loan.

It's not a commercial loan.

It's actually a private lending hybrid that we have an investor that's taking these loans.

And that's why we're going to offer it to you today.

They'll go four to eight units.

Can we mix use?

Can have commercial all the way up to 49%.

And the DSCR ratio goes all the way down to 1%.

Loan amounts up to 2.5 million.

Loan scores.

Well, the credit scores started 680.

If you have a 680 minimum credit score, you're going to get a 60% loan to value.

If you have credit scores 720 or higher, you can move all the way up to 75%.

Loan terms, there's a whole variety of terms.

You can get fixed rates, adjustable rates, and the whole mix.

Can you pull cash out?

You can.

You maxed out at $1 million.

Mixed juice.

Can it be allowed?

Yes, it can in these programs.

But the max is 49% mixed juice.

So if you're anything over 49%, you're going to fall right into this category where it's a commercial loan.

Can you close in your company's name or your LLC?

Absolutely, you can.

And is there going to be a prepayment penalty?

Most cases, there can be a zero prepay all the way up to a three-year prepay.

That'll help out with your rate and costs.

The more you have on a prepay, the better the terms are going to be on that type of loan.

And then the closing term, it usually is going to take between 30 and 45 days to close these loans.

Much quicker than commercial.

And about the same time frame as conventional loans.

So if you're stuck right now and you're trying to get qualified and you're just pulling your hair out,

you're like, I don't have it.

You might even have an instance where you have too many properties to qualify for conventional loan.

And then this mixed DSCR might be just the answer for you.

So if any of these areas fit what you're looking for, I'd love to be able to help you.

So how do you reach out to us for some assistance?

Well, let's get over to our website right through here.

It is going to be the rate update.com.

Here's a unique thing about us.

We're actually licensed in all 50 states as well as Puerto Rico.

Why I work at a federal bank.

The cool thing about our bank, though, is we have 30 other lenders that we work with.

So when you put in your application right through here, if you're looking for a conventional loan,

maybe even that multi-use fixed rate, fixed term.

Well, hopefully we can help you right through here on our website.

So go to the rateupdate.com.

You can put in your application right above my head.

You can schedule one-on-one consultation with me or Alan, where he can give us a call.

I eat four, four, seven, seven, five, five, six, two, six.

And if you want to find more videos in respect to this and other categories, please scroll down.

And on our YouTube channel, we have over 3,000 videos to help you understand the real estate market.

So thanks for watching.

Hopefully we can be of assistance to you.

God bless.

Have a fantastic day.

I can't wait to see you next time.

Bye-bye.

Bye-bye.

Bye-bye.