Mixing Short-Term & DSCR Loans – Has Anyone Tried It?

[Brandon Lee]

I've noticed some investors combining short-term financing for acquisition/rehab, then refinancing into DSCR loans for the long-term. Has anyone here tried this hybrid approach? Curious to hear if it's helped your cash flow or slowed down the process.

[Erik Estrada]

Quote from @Brandon Lee:

I've noticed some investors combining short-term financing for acquisition/rehab, then refinancing into DSCR loans for the long-term. Has anyone here tried this hybrid approach? Curious to hear if it's helped your cash flow or slowed down the process.

 Hey Brandon! 

This is actually very common in this space. Most Investors use hard money financing on value add deals and then refi into a DSCR loan. Many DSCR lenders have very little title seasoning requirements, so it will be a lot faster to scale.