Do you want to buy rental properties, but you don't fit the approval box for regular investor mortgages? Maybe you're self-employed, you recently left your job, or you've already hit your loan limit. In this episode, we're diving into DSCR loans, a powerful financing tool that's based on your rental income and not your personal income. To help me break it down, I'm joined by Brian Maddox, a mortgage expert and investor who knows how to help people like you keep growing.

Let's get started.

So, Brian, I'm thinking back to like 20 years ago or 22 years ago when I was a new investor.

I wish I had the tool of the DSCR loan,

which we're going to talk about what that means here in a second. But I wish I had that when I was

growing my portfolio because I didn't have access to a 30-year fixed financing with not having

to have W-2 income stats and all these big stacks of paper you normally have

to have. I couldn't get 30-year fixed financing as in the scenario I was as an entrepreneur,

and it would have been a huge benefit. And so what I want to talk about today is that we're in a

really, I think, kind of a golden opportunity with the financing world right now to have this

particular tool for real estate investors called a DSCR loan.

And you're the guy to talk to about it because you help a lot of investors get these loans and

you understand the ins and outs and just the details of it. So maybe a place to start is,

let's just talk about the basics. Can you explain what a DSCR loan is and maybe what that stands for?

It's a great place to start. So debt service coverage ratio, debt service, that's just your

monthly payment, right? You're servicing your debt. Coverage ratio coverages your rental income.

And then ratio is how much income do you have versus

your payment so most lenders they want to see a DSCR of a 1.0 a ratio of a 1.0 meaning you have

at least a dollar coming in in rental income for every dollar going out in payment for payment

they're looking at the principal interest,

taxes, insurance, plus HOA if there's an HOA. So it's, it's your holding cost of the property.

And all we're looking at is the rental income and the payment. Wow, you simplify that. I was going

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