DSCR Investors: Are Reserve Requirements Holding You Back?

Question

Some lenders ask for 6–12 months of reserves even when cash flow is strong. Has that stopped you from closing a deal or scaling further?

John Morgan · Answer

I’ve ways had barely any reserves in savings because I’m constantly putting my cash into buying more and more houses. My DSCR lender doesn’t care and lets me use my 401k balance as reserves. And my 401k plan doesn’t even allow me to withdraw the money until I’m 59 1/2 unless it’s an emergency. lol

Lipa F. · Answer

Even the lender don't require it. Wise investors will only invest if they have cash reserves. But I see a lot of good dscr lenders don't require it.

DSCR Investors: Are Reserve Requirements Holding You Back?

3 Replies