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Multifamily Value-Add Financing with Bridge to DSCR Loans
In this episode, Beau talks about value-add financing for multifamily homes using a bridge to DSCR loan. He talks about a strategy to use high-leverage financing for the acquisition. Once the property is stabilized, you refinance with a DSCR loan.
In case you don't know, a DSCR loan means “Debt service coverage ratio.” The advantages of a DSCR loan is that no tax returns are required and they're much easier to underwrite than bank and credit union mortgages.