How do i find a DSCR lender in OHIO

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How do i find a DSCR lender in OHIO

George Duchatelier
New to Real Estate · OH · Member since 2022 · 53 posts · 26 votes

My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!

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Dave PoeppelmeierBusiness Member
Realtor · Maumee, OH · Member since 2015 · 491 posts · 722 votes
3y

Talk to @Chris Wharton at First Ohio. He works with several clients of mine. If you're interested in the Toledo market, let's set up a time to talk. 

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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Happy to connect you with mine 

    1Reply
  • George Duchatelier
    OP
    New to Real Estate · OH · Member since 2022 · 53 posts · 26 votes
    3y
    Quote from @Eliott Elias:

    Happy to connect you with mine 


     That would be great! Thank you

    0Reply
  • Dave PoeppelmeierBusiness Member
    Realtor · Maumee, OH · Member since 2015 · 491 posts · 722 votes
    3y

    Talk to @Chris Wharton at First Ohio. He works with several clients of mine. If you're interested in the Toledo market, let's set up a time to talk. 

    Podcast Guest on Show #380
    Keller Williams Citywide | Dave Poeppelmeier534 Reviews
    WebsiteView Page
    4Reply
  • George Duchatelier
    OP
    New to Real Estate · OH · Member since 2022 · 53 posts · 26 votes
    3y
    Quote from @Dave Poeppelmeier:

    Talk to @Chris Wharton at First Ohio. He works with several clients of mine. If you're interested in the Toledo market, let's set up a time to talk. 

    I believe I started following him. Thanks! I’m looking at Youngstown area
    1Reply
  • Chris WhartonBusiness Member
    Lender · Columbus, OH · Member since 2020 · 85 posts · 73 votes
    3y
    Quote from @George Duchatelier:
    Quote from @Dave Poeppelmeier:

    Talk to @Chris Wharton at First Ohio. He works with several clients of mine. If you're interested in the Toledo market, let's set up a time to talk. 

    I believe I started following him. Thanks! I’m looking at Youngstown area

    [email protected]614-638-9531
    2Reply
  • Chris WhartonBusiness Member
    Lender · Columbus, OH · Member since 2020 · 85 posts · 73 votes
    3y

    Let's connect. If you have two existing conventional loans it leads me to believe you could continue down that path. GSE max is 10 personally financed properties.

    [email protected]614-638-9531
    2Reply
  • George Duchatelier
    OP
    New to Real Estate · OH · Member since 2022 · 53 posts · 26 votes
    3y
    Quote from @Chris Wharton:

    Let's connect. If you have two existing conventional loans it leads me to believe you could continue down that path. GSE max is 10 personally financed properties.

    Correct I have 2 properties. I’m looking for a dscr. That’s the only way, besides a hard money loan to try and scale. The goal is 2 more properties. One with my LLC group and one with my wife and I
    0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    3y
    Quote from @George Duchatelier:

    My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!


    DSCR Loan seems like a good route for you! There is one small wrinkle in Ohio in that the loan amount needs to be at least around $100k for the DSCR lender to have a prepayment penalty which is key to getting lower rates on DSCR loans, so I would make sure its a property worth at least in the $150k+ range

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    1Reply
  • George Duchatelier
    OP
    New to Real Estate · OH · Member since 2022 · 53 posts · 26 votes
    3y
    Quote from @Robin Simon:
    Quote from @George Duchatelier:

    My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!


    DSCR Loan seems like a good route for you! There is one small wrinkle in Ohio in that the loan amount needs to be at least around $100k for the DSCR lender to have a prepayment penalty which is key to getting lower rates on DSCR loans, so I would make sure its a property worth at least in the $150k+ range

    I appreciate the info! The price range will definitely be higher than 100k or more because I want to be able to buy a triplex or quad if possible!
    1Reply
  • Michael Kinsella
    Lender · Member since 2018 · 617 posts · 275 votes
    3y

    @George Duchatelier Many HMLs have a rental or 'DSCR' product.

    You can use BiggerPockets and follow: Network --> Hard Money Lenders --> Filter by state as a starting point.

    It appears some of the posters above may have some good referrals as well.

    I'm seeing rental product interest rates for SFRs in the 7's right now.

    0Reply
  • George Duchatelier
    OP
    New to Real Estate · OH · Member since 2022 · 53 posts · 26 votes
    3y
    Quote from @Michael Kinsella:

    @George Duchatelier Many HMLs have a rental or 'DSCR' product.

    You can use BiggerPockets and follow: Network --> Hard Money Lenders --> Filter by state as a starting point.

    It appears some of the posters above may have some good referrals as well.

    I'm seeing rental product interest rates for SFRs in the 7's right now.

    Thanks for the info. Yes, high 7s have been told to me as well. Looking more so for multi family
    0Reply
  • Nicholas Salman
    Lender · OH · Member since 2022 · 113 posts · 77 votes
    3y

    Hey, George!  We have plenty of options that are investor friendly.  I would love to connect and take a deeper look.

    Best wishes!

    0Reply
  • George Duchatelier
    OP
    New to Real Estate · OH · Member since 2022 · 53 posts · 26 votes
    3y
    Quote from @Nicholas Salman:

    Hey, George!  We have plenty of options that are investor friendly.  I would love to connect and take a deeper look.

    Best wishes!

    Thanks for reaching out. What options besides conventional loans can you offer?
    0Reply
  • Nicholas Salman
    Lender · OH · Member since 2022 · 113 posts · 77 votes
    3y
    Quote from @George Duchatelier:
    Quote from @Nicholas Salman:

    Hey, George!  We have plenty of options that are investor friendly.  I would love to connect and take a deeper look.

    Best wishes!

    Thanks for reaching out. What options besides conventional loans can you offer?

     We offer plenty of investor options!  I'd be happy to get on a call so I don't solicit per BP guidelines

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @George Duchatelier:

    My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!


     Hey George, 

    I see that you are concerned about having your personal name on title. DSCR Loans are perfect for closing title under an LLC. Unfortunately, you will still have to use yourself, another member, or both to personally guarantee the loan.

    Also be aware that many DSCR products have 3-5 year prepayment penalties. There are a few were you can buy down the prepay to 1 year, to save yourself from getting locked into a high interest rate loan for 3-5 years.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • George Duchatelier
    OP
    New to Real Estate · OH · Member since 2022 · 53 posts · 26 votes
    3y
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:

    My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!


     Hey George, 

    I see that you are concerned about having your personal name on title. DSCR Loans are perfect for closing title under an LLC. Unfortunately, you will still have to use yourself, another member, or both to personally guarantee the loan.

    Also be aware that many DSCR products have 3-5 year prepayment penalties. There are a few were you can buy down the prepay to 1 year, to save yourself from getting locked into a high interest rate loan for 3-5 years.

    What do you mean by pre payment penalties? There’s an issue if I pay off the loan early?


    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @George Duchatelier:
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:

    My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!


     Hey George, 

    I see that you are concerned about having your personal name on title. DSCR Loans are perfect for closing title under an LLC. Unfortunately, you will still have to use yourself, another member, or both to personally guarantee the loan.

    Also be aware that many DSCR products have 3-5 year prepayment penalties. There are a few were you can buy down the prepay to 1 year, to save yourself from getting locked into a high interest rate loan for 3-5 years.

    What do you mean by pre payment penalties? There’s an issue if I pay off the loan early?



     Yes these loans carry Prepays. Typically a 5,4,3,2,1 step down prepayment penalty. Meaning if you paid off the loan the first year, it would be 5% of the loan amount, second year 4% of the loan amount, and so on. 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • George Duchatelier
    OP
    New to Real Estate · OH · Member since 2022 · 53 posts · 26 votes
    3y
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:

    My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!


     Hey George, 

    I see that you are concerned about having your personal name on title. DSCR Loans are perfect for closing title under an LLC. Unfortunately, you will still have to use yourself, another member, or both to personally guarantee the loan.

    Also be aware that many DSCR products have 3-5 year prepayment penalties. There are a few were you can buy down the prepay to 1 year, to save yourself from getting locked into a high interest rate loan for 3-5 years.

    What do you mean by pre payment penalties? There’s an issue if I pay off the loan early?



     Yes these loans carry Prepays. Typically a 5,4,3,2,1 step down prepayment penalty. Meaning if you paid off the loan the first year, it would be 5% of the loan amount, second year 4% of the loan amount, and so on. 


    Oh ok. I figured it would be like any other loan where it takes the 30 years to pay off the loan. Since it’s a buy and hold property I’m trying to get

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @George Duchatelier:
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:

    My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!


     Hey George, 

    I see that you are concerned about having your personal name on title. DSCR Loans are perfect for closing title under an LLC. Unfortunately, you will still have to use yourself, another member, or both to personally guarantee the loan.

    Also be aware that many DSCR products have 3-5 year prepayment penalties. There are a few were you can buy down the prepay to 1 year, to save yourself from getting locked into a high interest rate loan for 3-5 years.

    What do you mean by pre payment penalties? There’s an issue if I pay off the loan early?



     Yes these loans carry Prepays. Typically a 5,4,3,2,1 step down prepayment penalty. Meaning if you paid off the loan the first year, it would be 5% of the loan amount, second year 4% of the loan amount, and so on. 


    Oh ok. I figured it would be like any other loan where it takes the 30 years to pay off the loan. Since it’s a buy and hold property I’m trying to get


     It still is a 30 year loan that fully ammortizes. Is your goal to pay down the mortgage?

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • George Duchatelier
    OP
    New to Real Estate · OH · Member since 2022 · 53 posts · 26 votes
    3y
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:

    My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!


     Hey George, 

    I see that you are concerned about having your personal name on title. DSCR Loans are perfect for closing title under an LLC. Unfortunately, you will still have to use yourself, another member, or both to personally guarantee the loan.

    Also be aware that many DSCR products have 3-5 year prepayment penalties. There are a few were you can buy down the prepay to 1 year, to save yourself from getting locked into a high interest rate loan for 3-5 years.

    What do you mean by pre payment penalties? There’s an issue if I pay off the loan early?



     Yes these loans carry Prepays. Typically a 5,4,3,2,1 step down prepayment penalty. Meaning if you paid off the loan the first year, it would be 5% of the loan amount, second year 4% of the loan amount, and so on. 


    Oh ok. I figured it would be like any other loan where it takes the 30 years to pay off the loan. Since it’s a buy and hold property I’m trying to get


     It still is a 30 year loan that fully ammortizes. Is your goal to pay down the mortgage?


     Correct. Have the tenants pay the mortgage for me through rents like my other properties

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @George Duchatelier:
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:

    My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!


     Hey George, 

    I see that you are concerned about having your personal name on title. DSCR Loans are perfect for closing title under an LLC. Unfortunately, you will still have to use yourself, another member, or both to personally guarantee the loan.

    Also be aware that many DSCR products have 3-5 year prepayment penalties. There are a few were you can buy down the prepay to 1 year, to save yourself from getting locked into a high interest rate loan for 3-5 years.

    What do you mean by pre payment penalties? There’s an issue if I pay off the loan early?



     Yes these loans carry Prepays. Typically a 5,4,3,2,1 step down prepayment penalty. Meaning if you paid off the loan the first year, it would be 5% of the loan amount, second year 4% of the loan amount, and so on. 


    Oh ok. I figured it would be like any other loan where it takes the 30 years to pay off the loan. Since it’s a buy and hold property I’m trying to get


     It still is a 30 year loan that fully ammortizes. Is your goal to pay down the mortgage?


     Correct. Have the tenants pay the mortgage for me through rents like my other properties

    Still possible with a DSCR.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:
    Quote from @Erik Estrada:
    Quote from @George Duchatelier:

    My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!


     Hey George, 

    I see that you are concerned about having your personal name on title. DSCR Loans are perfect for closing title under an LLC. Unfortunately, you will still have to use yourself, another member, or both to personally guarantee the loan.

    Also be aware that many DSCR products have 3-5 year prepayment penalties. There are a few were you can buy down the prepay to 1 year, to save yourself from getting locked into a high interest rate loan for 3-5 years.

    What do you mean by pre payment penalties? There’s an issue if I pay off the loan early?



     Yes these loans carry Prepays. Typically a 5,4,3,2,1 step down prepayment penalty. Meaning if you paid off the loan the first year, it would be 5% of the loan amount, second year 4% of the loan amount, and so on. 


    Oh ok. I figured it would be like any other loan where it takes the 30 years to pay off the loan. Since it’s a buy and hold property I’m trying to get


     It still is a 30 year loan that fully ammortizes. Is your goal to pay down the mortgage?


     Correct. Have the tenants pay the mortgage for me through rents like my other properties


    Still possible with a DSCR. Might have to put more down and buy down the rate so you can lower the mortgage payment. Interest rates are pretty high on these right now.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    3y
    We use Wayne Savings and Civista.
    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3y
    Quote from @George Duchatelier:

    My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!


     I can send you some lender referrals Ohio.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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    1Reply
  • George Duchatelier
    OP
    New to Real Estate · OH · Member since 2022 · 53 posts · 26 votes
    3y
    Quote from @Remington Lyman:
    Quote from @George Duchatelier:

    My partners and I are interested in purchasing our 2nd rental property somewhere in OHIO. Due to the fact that i have 2 rental properties already in MY name, I know going the traditional route wont work. (I bought a duplex with my partners and a SFH with my wife) I found a post on IG where you can get a DSCR loan. I'm interested in finding a lender that I can contact to see about qualifying and possibly purchasing another rental property some time in 2023. Any information would be helpful and grateful. Thanks!


     I can send you some lender referrals Ohio.

    I appreciate it! I’m going to go with the lender that took care of my 2nd house. I didn’t know he deals with dscr loans.
    0Reply
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