THE EXPERTS IN RENTAL PROPERTY FINANCE
Many lenders claim to know how to lend to those building a real estate portfolio. Castle Rock actually excels at it. As a matter of fact, our COO Doug Smith has a formal credit background from two of the largest banks in the world and he regularly speaks to industry insiders on the subject. In this video. he serves on a panel at IMN’s Single Family Rental Forum with some of the industry’s top experts. Let Castle Rock be your finance partner as you build your rental property empire.
SCALE YOUR RENTAL PORTFOLIO TO THE NEXT LEVEL!
In April of 2021, The US Treasury Department put harsh restrictions on Fannie Mae limiting them on how many non-owner-occupied loans they could buy. An average investor might be able to do one or two investment property loans through Fannie Mae, but not much more…and forget it if you want to buy a property in the name of an entity. GOOD NEWS!!! We ONLY USE THE CASH FLOW OF THE PROPERTY and WE WILL LEND TO AN LLC OR OTHER ENTITY!!! By only using the cash flow on the property instead of all of your personal debts, we can help you scale your Rental Business to new heights.
Building your rental empire is easy with us. Let’s go through the process step-by-step to get you on your way to amassing wealth through rental property investment.
What is a DSCR Loan?
The DSCR Loan, or “Debt Service Coverage Ratio” loan is the newest rage in rental property finance. We happen to be an industry leader in this type of loan. The DSCR loan focuses on the property cash flow…not that of the individual. With 20%-25% down and a decent credit score, chances are that we can provide you with a DSCR loan for your next rental property.
DSCR = Rental Amount / Principal + Interst + Taxes + Insurance + HOA Payment.
Here’s a short video explaining the process.
We do the traditional conventional loans, but FNMA is very restrictive and it is tough to qualify once you get past a rental property or two. Most of our rental property programs require 20% – 30% down and they are made to an entity (your LLC, S-Corp, etc). The owners with ownership of 20% or more typically also sign as “guarantors”. We only cash flow the property, not you personally, so qualification as you scale up your business is much, much easier. We do check the credit of the guarantors. Rates on this program vary depending upon many factors such as the prepayment penalty option chosen, whether go fixed or variable with the rate, amount of down payment, credit, and a few other factors that we can discuss when you are ready.
When you are ready to move forward, there is a simple, on-line form that I have you complete for each person involved in the entity (guarantor). Provided you are using the same business entity and guarantors for every transaction and nothing with their situation changes, you’ll simply need to complete one for the transaction.
Here are the items needed for a single purchase or refi of a rental investment property:
Guarantor Application: Complete one application for each Fill in all boxes the best you can. Each owner of the entity with a 20% or more interest must complete this application, but you can do it separately. We do not share information with the other partners. One note – this form is also used for consumer loans, so if you do get automated emails asking you to upload information, you can ignore them.
Settlement Statement (for refinance) or Sales Contract (for purchase): For a refinance please provide the Settlement Statement from when the property was purchased. For purchases please providefully-executedsales contract complete with all addendums. If you are getting the property from a wholesaler or other assignor, we need a complete, fully-executed copy of the assignment as well.
Settlement Statements from Previous Projects: It would be helpful to understand your level of experience with this sort of project. We’ll request NO MORE THAN 5 settlement statements from previous projects to get an idea of your level of experience.
2 Months Asset Statements: Please provide 2 months bank & brokerage statements, all pages (even if they are blank).
Survey: The title agent will need a copy of the survey. If you have one, great. If not, we’ll need to have one ordered for you.
Identification: Copy Driver’s License or Passport for each Guarantor.
Insurance Information: We will need a copy of the binder or declarations page for the property hazard insurance and, if applicable, the flood insurance. Be sure to get us the name, phone number, and email address for your agent(s). Also, for properties of 5 units or more, we need to get a copy of your general commercial liability declarations page.
Past Experience: We’ve found that establishing your level of experience goes a long, long ways in getting you the best deal possible. That’s why we recommend providing us with up to eight past settlement statements from deals that you’ve done. For obvious reasons, experienced operators tend to perform much better than those with little or no experience. We have programs for the inexperienced, but if we can show that you have a lot of experience, underwriters tend to be much more aggressive when lending.
Entity Documents:
- For an LLC: Articles of Formation, Fully-Executed Operating Agreement, IRS SS-4 Form, Certificate of Good Standing
- For a Corporation: Articles of Incorporation, By Laws, Meeting Minutes Authorizing the Transaction, Certificate of Good Standing, IRS SS-4 Form
Call Us at 813-727-3621 and Let's Talk About Your Scenario
Every deal is different, but we have the experience to shepherd you through almost any situation. Call us and let’s discuss how we can help you start, grow, and/or scale your real estate investment business.
Castle Rock Capital Funding, LLC (NMLS 2318381) is a Florida LLC owned by Douglass Smith, Licensed Mortgage Loan Originator (NMLS 1984040).
About Us
A family owned company; we’ve been helping residential and commercial clients purchase and refinance property. Please click on About in the headers to learn more.
Company NMLS: 2318381
www.nmlsconsumeraccess.org
