Tag Archive for: rental

DSCR Loans: How Flexible Are the Rules and Guidelines?

Many investors wonder how flexible the rules and guidelines are for DSCR loans. Do all DSCR lenders have the same guidelines or follow universal rules? The answer is no! Unlike Fannie and Freddie, or traditional lenders, DSCR loans do not have the same guidelines. Instead, DSCR loans are regulated by a few big investors and do not force people to fit into a computerized box. This creates the opportunity for investors to find the perfect loan to meet their needs. 

Every lender is different.

Every DSCR lender is different and they each have their own guidelines that they follow. While a lot of lenders will only do 1 to 4 units, others will be more adventurous and do commercial properties.  For these lenders, you either fit in their box or you don’t. All DSCR lenders are not the same, they don’t always look the same, and most importantly they are not priced the same. It is important to keep this in mind when you are looking and shopping for DSCR loans.  Shopping around for the best loan to fit your needs is especially important if you have something unique. 

Unique properties require unique loans.

Many unique properties include ones that need a smaller loan, a rural loan, mixed use, or properties that are above 4 units.  Keep in mind that some lenders are not always able to meet your needs. Unlike traditional loans, DSCR lenders all follow different guidelines and requirements. While one will do a DSCR ratio of 1, another lender will require 1.1 to get their best rates. Your credit score also plays a role in loan approval. Some lenders will go down to a 620 credit score, while others will say that 680 is the lowest they will go. There are so many different options that are available to investors. Be sure to take your time to find the best option for you and your property.  

The lending box.

There is a lending box that 60% to 70% of investors fit into. This box requires them to have a 700 credit score, 75% LTV, and a 1 to 4 unit property. For these investors, it becomes a matter of price shopping to see which lender has the best price for their property. If you don’t fit into this box don’t worry! There are a multitude of loan options available that can provide the flexibility you need to succeed. Do you have a VRBO, Airbnb property, pad rental, or a rural property? Find the right loan and the right amount for your next investment project. Whether it’s $50K or $300K, DSCR lenders have the versatility that can open the door to endless possibilities.

What to look for?

It is important to keep in mind all of the options available to you when looking at DSCR loans. This includes the pricing, rules, and regulations, which can vary depending on the lender. Here at The Cash Flow Company we have between 7 and 10 different places that we work with for DSCR loans. That is because not every DSCR loan type will fit in every lender’s box. For example, we are doing a portfolio for a customer who has a 12 plex, 4 plex, and a couple single family properties. The borrower only wants one loan. Another customer is doing 3 single family properties, but two are very unique situations. One is a pad split, another is a contract for a deed. Our goal for both customers is to find a lender that can do all of these properties in one loan. By finding the right DSCR lender, the sky’s the limit to your success.

We are here to help!

Are you in need of a DSCR loan for a unique property? Here at The Cash Flow Company we are happy to run through the numbers to see which loan is best for you. Most importantly, there is no need to run your credit! Don’t get stressed trying to fit into a lending box! Keep your options open and find the right DSCR lender today! 

Contact us today to find out more about DSCR loans! 

Watch our most recent videoDSCR Loans: How Flexible Are the Rules and Guidelines?” to find out more! 


Buying on-market properties is a money-suck for real estate investors. Here’s why to use the BRRRR strategy instead.

There are a lot of ways to mess up the BRRRR method.

But when you understand it right, this real estate strategy creates cash flow and net worth almost out of thin air.

We want to put the power of BRRRR in your hands. This is the start of a series walking through the BRRRR process step-by-step.

Let’s begin with the fundamental idea behind BRRRR – the thing that gives this method its money-making magic. How does the BRRRR strategy create cash flow out of seemingly nothing?

BRRRR Property vs Buying Retail

This is the basic concept behind real estate investing. There are two types of real estate properties:

  • Retail – When we think of a house as “on the market,” it’s a retail property. These houses are sold at market price, a cost determined by current market conditions. In real estate, this includes supply, demand, location, interest rates, and a number of other factors.
  • Undermarket – Properties that might be considered “off-market” are sold at an under-market price. There’s something preventing the house from being sold at market value as-is. The home could be outdated, damaged, foreclosed, or suffering from some other condition.

To break down exactly why and how BRRRR works, we need to look at the difference between buying retail and buying under-market as an investor.

Buying Retail with the BRRRR Strategy Doesn’t Work

The problem with buying retail as an investor is the house comes with no equity.

Let’s say you buy a property worth $400,000 (listed for that amount). With a conventional loan, the lender will cover up to 80% of the cost of the house. So you’ll need to put down 20%.

When you purchase the house and make the down payment, you’re transferring wealth, not creating it. You’re taking the money from your financial account and transferring it to the physical property.

So, you’ve moved $80,000 into the house, got a loan for $320,000, and created no additional wealth from the transaction.

There are three main disadvantages to retail properties:

  • The property may create cash flow or wealth in the future as a rental property, but there is no wealth created from the purchase.
  • You’ll require money up-front (in this case, $80,000 plus closing costs).
  • You can only repeat BRRRR retail properties as long as you have the money to fund them.

Buying Under-Market for BRRRR

True BRRRR properties, however, solve all three of those problems retail properties have. A BRRRR property:

  • Creates equity & cash flow immediately (and over time).
  • Can be done with zero money down.
  • Is a repeatable process.

BRRRR is all about buying under-market properties – the houses that are unwanted and unloved. In this market going into 2023, a lot of these types of homes will pop up, resulting in some great deals.

BRRRR Purchase

There are certainly some nuances to BRRRR, but let’s look at the bare basics. Let’s take the same example used for the retail property.

You, again, buy a property with a value of $400,000. However, since it’s valued under-market, you can purchase it for only $250,000.

The catch is that the house isn’t necessarily worth the $400k as-is. The potential is there, but you’ll have to update and rehab it. Between those fix-up costs and the closing costs, you’ll have to put $50,000 more into the property.

So the total cost of the property ends up being $300,000, or just 75% of the value of the home.

Cost of the BRRRR Strategy

That 75% number is not only realistic but recommended for BRRRR properties. In down markets, it’s not entirely uncommon to see houses at 65% or below.

In this example, our all-in price (purchase + closing + rehab) is $300k, and the property is worth $400k.

Right away, we’ve created $100,000 in net worth.

Retail vs BRRRR: The Numbers

Now that we’ve explained the initial numbers, let’s do a side-by-side comparison to see why BRRRR is powerful enough to create generational wealth.

  • Value: We’re comparing two homes with the same value – same neighborhood, same block, same size. Let’s say the value is $400k.
  • Loan: For the BRRRR, our total costs would add up to $300k. Our leverage 100% covers this amount. For the retail home, we could get an 80% LTV, so our remaining loan is $320k. On retail, we have less cash flow because we owe more money.
  • Cash Transfer: With BRRRR, you’re moving $0 of your own money. This is why properties with the BRRRR strategy are so popular for investors. With the retail property in our example, you need to transfer $80k of your money as a down payment. 

There are two problems with the cash transfer requirement in retail properties. 1) You need the cash to get into it. And, 2) The last “R” in BRRRR is repeat, so you’d have to have $80k again for your next property and your next. On under-market BRRRR properties, the zero out-of-pocket costs free you up to repeat the process over and over.

  • Payments: BRRRR payments will be lower than retail payments by about $25-$50/month, simply because the loan amount is lower.
  • WEALTH: The BRRRR strategy property immediately creates $100k. The retail property adds $0. It only has the loan + the $80k that was yours to begin with.

BRRRR Strategy Explained: Why These Properties 10x Your Net Worth

How BRRRR Creates Wealth

The wealth in BRRRR comes from the difference between the value of the property and what you owe on it. This usually ends up being 25% of the value of the home.

If you multiply this process by 5-10 properties? You’ve suddenly got half a million to a million dollars in net worth.

Using the BRRRR strategy like this isn’t just wishful thinking. In 2010, we helped multiple families buy 10 properties in one year using this method. Many of their properties tripled and quadrupled in value over the last 10+ years.

The 2023 market is shaping up to look a lot like 2010. The time to buy is coming soon.

Using the BRRRR Strategy

Thinking about testing the BRRRR strategy for yourself?

We’ll be walking through the entire BRRRR process over the next few weeks. BRRRR is a simple way to generate wealth – but only if you really understand how the process works!

Send us an email at Info@TheCashFlowCompany.com if you have any questions. Check out our YouTube channel for more free information on BRRRR and other real estate investing strategies.

Realtor 100 Program

Introducing the Realtor 100 Program!

As a realtor, you probably see a lot—like, A LOT–of properties cross your desk every week. And out of those properties, you’ve probably seen your fair share of sweet real estate deals.

Well, have you ever considered purchasing one of those value-add properties for yourself so you can flip it or keep it as a rental?

If so, we can help you stop listing and start buying with our Realtor 100 Program.

This real estate agent-only program is designed to help you make more money by boosting your cash flow and keeping your clients happy. It’s a win-win situation. You get to make more than your usual commission, AND you get to rescue clients who need to sell their home fast.

The Realtor 100 Program offers:

  • 100% financing
  • Fast closings
  • Fewer hiccups because you’ll buy properties as-is. That means you won’t need to worry about appraisals, lender inspections, funding conditions, slow underwriting and other issues that cause the entire process to grind to a halt.

Better yet, you can choose to close each investment deal in your own name, or a company name. And don’t worry about finding a business partner. That isn’t required to get the ball rolling on these kind of deals.

So, what are you waiting for? A new, innovative strategy to make more than your usual real estate agent commission is right at your fingertips! You just have to reach up and take hold of it.

Ready to get going today? Great! Our team is here and ready walk you through the Realtor 100 Program. Because we’re all eager to set you on a path that helps you make the kind of money you need…to live the life you want.

And, as always, remember that cash flow makes life flow.

Happy investing!

How to Buy a Rental Property: 5 Ways To Fund Your Real Estate Deal

Do you want to know how to buy a rental property? Then check out these 5 ways to fund your real estate deal.

If you’re interested in generating positive cash flow with a rental property, then it’s important you know how to actually BUY a rental property. Like, where does the money come from? Because most real estate investors don’t have hundreds of thousands of dollars sitting around.

Most will need a real estate loan.

So, let’s take a quick look at the various types of real estate lenders you can rely on to fund your rental properties. Just like fix and flips and other value-add properties, you have 5 different options, and each of these options have various pros and cons.

Hard Money.

Hard money is a great option when you need to close a deal fast. We’re talking days instead of weeks or months. Plus, most hard money lenders offer 100% financing.

The downside is hard money can be expensive. Rates tend to be higher than other lenders. But this type of loan is intended to be short-term. If used correctly, you only pay these high rates for 6 months or less.

Non-Traditional Loans

Another option to buy a rental property is using a non-traditional loan. These are excellent for those who don’t have—or don’t want to use their tax returns. Unfortunately, they also come with high rates, so they’re more expensive than some of your other real estate funding options.


Banks are useful for those who can make the cut. They offer lower rates and allow you to keep your real estate loan in your LLC or business name.

But banks also have the strictest requirements, and if you don’t meet those requirements, you’ll get rejected. Worse, they require 3-5 year terms, so you can’t get in and out of them as fast as hard money and other loan options.

Traditional Loans

Traditional loans are one of your cheaper options because they offer the best rates. But be careful, because these types of loans have stricter requirements. And, unlike banks, you can’t put the loan in your LLC or business name. You have to keep it in your personal name.

OPM (Other People’s Money)

Compared to all the other real estate lenders, OPM offers the lowest cost and highest flexibility. You only pay interest, so there are no points or other random fees. Better yet, you and your lender can set the terms together.

The only downside to OPM is finding those who are willing to lend their money to you. But that’s where gaining experience and knowledge in real estate investing helps. The more you know, the more you can prove you’re worth the investment.

So, there you go. If you’re interested in buying a rental property, one of these 5 options can help you actually BUY it. Which one is the best? Well, there’s no right answer to that, because every real estate investor has a different path. What works for you might not work for someone else.

Ready to find out what YOUR path is? Great! Our team is here to help. We’re excited to set you on a path that helps you make the kind of money you need…to live the life you want.

Happy investing!

How to Get a Loan for Your Rental Property Investment

How to Get a Loan for Your Rental Property Investment

Are you looking for a lightning fast, easy loan for your rental property investment? Something that comes with affordable, long-term fixed rates?

Then we have your solution.

We call it the Easy Rental Loan, but you might notice that other lenders in the real estate industry call it a DSCR loan (debt service coverage ratio loan).

Yeah, we’ll stick with Easy Rental Loan, because it’s just easier to remember!


All you really need to know about this type of loan is that it revolves around 2 key items:

  1. A decent credit score,
  2. And a lease that covers the monthly cost of your property.

What do we mean by “monthly costs”? Well, if you look at most rental property calculators, they have you add up the following to see what you owe on the rental property each month:

  • Mortgage payment
  • Property taxes
  • Insurance
  • HOA fee

If your property positively cash flows (aka, you make more than you spend on the property), then you can qualify for an Easy Rental Loan. Better yet, you can still qualify for good interest rates and a 30-year fixed term.

Better still, you don’t have to worry about submitting tax returns, being in business for 2 or more years, or having too many financed properties.

It really doesn’t get easier than that.

So, if you’re looking for a fast, efficient, and, most importantly, EASY solution to funding your rental and other value-add properties, then look no further. We’ve got an Easy Rental Loan waiting for you.

Ready to chat about your cash flow options? Great, our team is here and eager to set you on a path that helps you make the kind of money you need to live the life you want!

Happy investing!


Friday Fun: So Much Cash Flow


Friday Fun: So Much Cash Flow

Friday Fun: So Much Cash Flow

Ready to boost your cash flow and maximize your equity?Our team can show you how using our Quick To Buy, Quick to Refi strategy. Contact us today!

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Thursday Tip: The 1 Percent Rule

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Have you heard of the 1% Rule? Yes? No? Either way, check out this video from Matt McKeever about why you need to know about this real estate investment strategy.


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One of the best ways to make the most on your investments is to find wholesale deals. But, how do you do that? Well, here are 5 tips from REIClub.com. Check them out!

Ready to learn more? Visit our Investor Tools page, or contact us today!

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How do you analyze an investment property before you invest in it? Well, check out this walk-through from Bigger Pockets. It offers excellent tips on evaluating a property in order to sell (or rent) it for top dollar.

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