A debt service coverage ratio (DSCR) loan is a popular financing tool among real estate investors. Rather than focusing on income or tax returns, DSCR financing looks at the cash flow generated by a rental property to determine loan eligibility.
DSCR loans are a valuable tool for overcoming the current economic environment and unlocking funding without the red tape associated with traditional financing. Here’s a close look at what debt service coverage ratio financing is and how it helped one Barrington Commercial Capital client seize new opportunities.
DSCR Loan Basics
A DSCR loan analyzes the rental income that a property generates compared to its debt obligations. This unique structure gives you a flexible option for getting funding fast. Here are some features of Barrington Commercial Capital’s DSCR loans:
These favorable terms make DSCR financing a flexible option for investors at all stages of their journey.
Meet Greg: An Investor Looking to Scale Fast
A DSCR loan for rental property purchases was the ideal solution for Greg, a long-time client of Barrington Commercial Capital. He is a local real estate investor with several rental properties and a clear vision for growth. Greg’s properties had built up significant equity, and he wanted to tap into that value to expand. After reviewing his portfolio, we identified four properties that offered strong refinance potential.
Our goal? Help Greg turn his equity into cash without the hassle of managing four separate loans.
The Power of Portfolio DSCR Loans
Rather than refinancing each property individually using traditional loans that could take 30, 60 or even 90 days to complete, we offered a portfolio DSCR loan. Greg bundled all four properties into one loan, reducing paperwork and simplifying the repayment process.
Greg unlocked roughly $400,000 in liquid capital. This structure simplified his finances and gave him a powerful tool to reinvest in new opportunities. He is already putting that cash to work to acquire more properties.
Funding the Next Chapter with Fix-and-Flip Loans
Now that Greg has capital in hand, he is working with Barrington Commercial Capital to secure fix-and-flip loans to move quickly on new investment properties. With our tailored products, he has access to flexible terms, competitive rates and fast closings. That’s the financial trifecta for active real estate investors.
Explore DSCR Loans with Barrington Capital
Do you own income-producing properties and want to scale? A DSCR loan could help you tap into existing equity and fuel your next big move.
Ready to learn more about DSCR financing? Connect with Barrington Commercial Capital today!
