Replace Your Income

Why they call it “Investor-Specific Financing” DSCR is the official name, but the framing matters.Conventional loans are still great (30-year fixed, strong rates) but:More hoopsMore documentationMore frictionHarder for business owners / complex income situationsWhat a DSCR loan is (and how it works) Debt Service Coverage Ratio underwriting focuses on the property’s ability to cover its own debt.Core concept:If rent covers (or nearly covers) the payment, it can qualify.Kevin gives a simple example:Rent $2,000 vs payment $1,800 → qualifiesEven near 1:1 can qualify depending on lender guidelines.Why this is a big win for business owners (and “interesting financials”) Many clients have complicated tax returns and multiple income streams.Conventional underwriting can feel burdensome—even demeaning—because of how intensely it scrutinizes personal finances.DSCR simplifies the borrower experience because it’s not about W-2 income and DTI.LLC ownership + personal guarantee (the “clean structure” part) A major feature: buy in the name of an LLC (no post-close quitclaim dance).Still typically personally guaranteed.Kevin’s line worth clipping:“You’re the personal guarantor, but a personal guarantee doesn’t mean personal liability is unlimited.”Avoiding the conventional 10-loan limit Conventional financing has the well-known 10-financed-property ceiling (often managed by splitting between spouses).DSCR loans:Don’t take one of those “10 slots”Can allow investors to scale further (20–30 properties possible, with increasing qualification standards as portfolios grow)Rates, fees, and prepayment penalties (January 2026 reality) Historically DSCR carried higher rates/fees.But in the current market (January 2026), they note:DSCR rates can be similar to conventionalCommon caveat:DSCR loans often have a prepayment penaltyNot a big deal for long-term holders (they’re not planning to exit in 2 years).Will it show up on personal credit? Steve explains:With some lenders, yes; with others, no.Strategic Lending knows how to route borrowers based on that preference.On default and credit impact:Steve’s understanding: typically it would not report like a standard personal mortgage—because the loan is made to the LLC secured by the property—though consequences still exist.What you need to qualify (simple but not “wild west”) Kevin emphasizes: this is not 2006-style “stated income” chaos.Typical DSCR pre-approval items discussed:Credit application + credit pullProof of assets / bank statementsExisting mortgage statements for financed propertiesReserves: at least 6 months PITI beyond purchase/closing fundsThe “new era” Moneyball stance: more conservative by design Their direction going forward:Push toward 30% down DSCR strategy more oftenAim for a better ownership experience (less outside cash needed for property “messiness”)Key philosophical point:This isn’t about maximizing leverage; it’s about maximizing staying power.Closing CTAKevin invites listeners to reach out with questions and book a call:dfy-realestate.com (Book Call button)kevin@dfy-realestate.com Subscribe to the Weekly Newsletter:Get weekly deals, market updates, blog posts, and more delivered straight to your inbox.👉 Join the list here   Ready to Build Your Game Plan?Book a call with Kevin and see what your personalized real estate roadmap could look like.👉 dfy-realestate.com   Connect With Us:Email Kevin directly: kevin@dfy-realestate.com Learn more about DFY’s done-for-you investing approach at dfy-realestate.com