loading
reading
writing
saving
searching
Looking For An Additional Income Stream? We can help! (Kalispell)
QR Code Link to This Post
DSCR: Debt Service Coverage Ratio. A DSCR loan is mainly used for rental investment properties. Instead of focusing heavily on the borrower’s personal income, the lender looks at whether the property’s rental income can cover the loan payment. Example: If the monthly mortgage payment is $2,000 and the property rents for $2,600, the property has enough income to help cover the debt.
BRRRR: BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It is more of an investment strategy than one specific loan type.
How It Works:
Buy — Purchase a property, usually one that needs repairs.
Rehab — Fix it up and increase the value
Rent — Place a tenant and start collecting rent.
Refinance — Refinance based on the improved value and rental income.
Repeat — Use the equity/cash-out to help fund the next investment.
Wholesale/Foreclosure:
This option provides a step-by-step process where you reach out to a homeowner directly with a lower-than-market value offer. There are 3 main strategies:
1-Seller Motivation: A seller does not always choose the highest price. Sellers often choose the offer that best solves the problem they may have which usually fall into one of 5 categories: speed, certainty, cash need, monthly income or problem relief.
2-The 3-Tiered Offer: Great for rental properties. This gives the seller choices and consists of one of these 3 options:
-Low-ball cash offer
-Small down with seller carry
-100% seller financing.
The best option for the landlord is 100% seller financing, which is the highest offer with little to no cash to buyer at closing. They retain the monthly rent income but you own the property and it is amortized over time. It takes the liability off of the landlord and may provide the best overall price.
-3-Net Offer: This offer can be useful when the seller cares most about what they walk away with after costs, liens, taxes or municipal issues. Sample concept: Seller receives $___, but not less than &___, subject to title, lien payoff, municipal and closing cost verifications.
Fix & Flip:
1️⃣ Buy a property below market value - Look for homes that need repairs, cosmetic updates, or have been neglected.
2️⃣ Renovate strategically - Focus on improvements that increase value, such as kitchens, bathrooms, flooring, paint, and curb appeal.
3️⃣ Sell for a profit - Once renovations are complete, sell the property at its new market value and keep the difference after expenses.
When banks say no, give us a call!