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Why would I want to finance with a DSCR vs going conventional?
It seems like the rates are better for conventional financing. Please elaborate on the benefits.
Thanks,
Thomas
Timestamps
[00:43] Conventional financing is more inexpensive, get better rate
[01:05] The benefits of a DSCR loan [01:13] DSCR loan is not based on your personal income
[01:24] Making your loan into business entity
[01:43] Business purpose loans do not show up on your personal credit report
[01:54] Most lenders on these business purpose loans do not show up on your personal credit report
[02:08] Doing projection based is another benefit
[02:44] Reason why a DSCR loan could be more beneficial than a conventional loan
[02:58] One loan on 3-4 properties
[03:12] Bundle big portfolios of properties and all will be under a business entity’s name and not in personal credit report
[03:45] A lot more paperwork on the conventional side for extravagant tax returns