The loan menu
From standard to creative
The standards
FHA, VA, USDA and conventional loans. The foundation for owner-occupied and many investment purchases.
The entrepreneur's choice
Bank statement, asset depletion and P&L programs for people whose tax returns do not show real cash flow.
Investor specials
DSCR loans qualify on the property's rent instead of your personal income, which helps investors scale.
Creative moves
Seller financing, bridge loans for speed, and ADU financing that adds rental income to a purchase.
DSCR, non-QM, bridge and fix and flip programs have different requirements, pricing, reserves and terms than conventional loans. Availability varies by lender, property and state.
Strategy
The BRRRR method
Buy, Rehab, Rent, Refinance, Repeat. The idea is to recycle your capital so it keeps working.
- Buy and rehab: short-term money to buy and improve an undervalued property
- Rent: stabilize it with tenants and steady cash flow
- Refinance: pull your capital back out based on the new value
- Repeat: put that money to work on the next one
Strategy
1031 exchanges
A 1031 exchange can let you defer capital gains taxes when you sell an investment property and buy another like-kind property.
- 45 days from the sale to identify replacement properties
- 180 days to close on the replacement
- Proceeds go through a qualified intermediary, never to you directly
1031 rules are complex. Talk with a tax professional about your situation.
Speak the language
Numbers every investor should know
Cap rate
Net operating income divided by the price. A quick way to compare properties without the loan.
Cash-on-cash return
Yearly cash flow divided by the cash you put in. How hard your money is working.
DSCR
Rent after expenses divided by the mortgage payment. Many DSCR lenders look for 1.0 to 1.25 or higher.
See all three with your numbers.
Run an investmentCome home.
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