Mortgage Monday-Misconceptions About DSCR Loans | Episode 45
The David Greene Show
David Greene
5 • 653 Ratings
🗓️ 31 March 2025
⏱️ 26 minutes
🧾️ Download transcript
Summary
Summary
In this episode of Real Talk Real Estate, David Green and Christian Bachelder delve into the intricacies of DSCR (Debt Service Coverage Ratio) loans, addressing common misconceptions and providing insights into how these loans can be beneficial for real estate investors. They discuss the differences between recourse and non-recourse loans, the variability among lenders, and the importance of understanding unique property considerations. The conversation also highlights the significance of having a solid exit strategy when dealing with bridge loans, ensuring that investors are well-informed and prepared for potential challenges in the real estate market.
Chapters
00:00 Introduction to Real Estate Wealth Building 00:28 Understanding DSCR Loans 03:17 Debunking DSCR Loan Misconceptions 09:44 Variability Among Lenders and Down Payments 16:21 Unique Property Considerations in DSCR Loans 21:13 Bridge Loans and Exit Strategies
Book a session with David: [email protected]
Ask a Question: DavidGreene24.com/ask
Find me on the “Minnect” app
Real Estate University: SpartanLeague.com
Join my Free Newsletter: Davidgreene24.com/textletter
Finance Your Real Estate: TheOneBrokerage.com
Intake@TheOneBrokerage @theonebrokerage
Free Textletter: DavidGreene24.com/join
STR Management: [email protected]
Investor Retreat: DavidGreene24.com/retreat
Subscribe to The David Greene Show!
Apple: https://podcasts.apple.com/us/podcast/the-david-greene-show/id1755485708
Spotify: https://open.spotify.com/show/5Nu6kCJTVzM2x2WsujqBOZ
Submit your question for David: https://davidgreene24.com/ask
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Welcome to Real Talk Real Estate, the show where we cover how to build wealth in real estate with no fluff, no BS, and no sales pitches. |
| 0:07.1 | I'm David Green, and I've been doing this for over 10 years. I've seen the ups, the downs, and everything in between. |
| 0:12.8 | This is the show where we pull back the curtain and show it to you too. So if you want to build wealth through real estate or you just love learning about it. You found your home. What's going on, |
| 0:21.6 | everyone? I am David Green, host of the David Green Show. joined today by Big Brain himself, the loan |
| 0:27.8 | Ranger. Christian Bachelder, this is Mortgage Monday, the show where we bring you mortgage updates, |
| 0:32.8 | news about what's going on in the real estate industry, and relevant highlights throughout the week that we think |
| 0:38.0 | will affect your wealth building. Today, Chris and I are going to be talking about misconceptions |
| 0:42.3 | with the DSCR loan. A couple years ago, the DSCR loan really kind of flooded the real estate |
| 0:47.9 | investing industry. And everyone was talking about it, but nobody really knew what it was. |
| 0:52.2 | At the one brokerage, I think we were probably, it's probably safe to say, we were the top DSCR lender for a good period of time there |
| 0:57.9 | doing more than anyone in the country. Christian was one of the front runners at putting it together. |
| 1:01.9 | We funded a lot of these. And now I'd say DSCRs are probably, I mean, conventional loans are still, |
| 1:09.4 | in most cases, the better option for someone |
| 1:11.6 | unless they're like me and their files really complicated. But once you hit a limit on how many |
| 1:16.4 | conventional loans you can get, or if you make your income in non-traditional ways, the DSCR, |
| 1:22.3 | which stands for debt service coverage ratio loan, can be really good. They are loans that |
| 1:26.4 | basically take commercial |
| 1:27.5 | lending fundamentals and apply them to residential properties. And at the one brokerage, |
| 1:33.3 | we have been able to come up some really creative ways to do it. So for instance, |
| 1:36.4 | Christian started a program where we could take short-term rental income projections, |
| 1:41.9 | not even income that the rental was already making, but comparable projections |
| 1:45.9 | and use that to fund people buying short-term rental properties. And when you're able to combine |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from David Greene, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of David Greene and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2025.