Has anyone use Launch Financial Group for DSCR on STR?

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Has anyone use Launch Financial Group for DSCR on STR?

Ted Freemyer
Investor · Knoxville, TN · Member since 2021 · 3 posts · 2 votes

Looking for some feedback if anyone has used Launch Financial Group for their DSCR loan on STR. I've recieved many quotes and preapprovals and they came back with the most competitive rate and terms for what we are looking to do. I haven't, however, found much info on them as an institution so looking here. Thanks in advance! Here is their link.

https://www.launchfg.com/

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Zach Edelman
Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
3y

I have not heard of them, but I would make sure, especially since they seem to be a new player in the space, to ask them the questions that are outlined on the "Best Questions to ask your DSCR lender for STRs" post on this forum: https://www.biggerpockets.com/...

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  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    @Ted Freemyer I have no familiarity with them but what was their quote? Would love to compete with it.  Do they have any Bigger Pockets reviews or references from other investors you know?

    We're doing 30 and even 40 year fixed using 80% of AIR DNA to calc DSCR.

    [email protected]818-606-8823
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    0Reply
  • Ted Freemyer
    OP
    Investor · Knoxville, TN · Member since 2021 · 3 posts · 2 votes
    3y
    Quote from @Alex Bekeza:

    @Ted Freemyer I have no familiarity with them but what was their quote? Would love to compete with it.  Do they have any Bigger Pockets reviews or references from other investors you know?

    We're doing 30 and even 40 year fixed using 80% of AIR DNA to calc DSCR.

    e 

     
    Alex, the quote on 30Y Fixed was 7.225% +2 origination pts, with 75% LTV, 5%-1% 5Y stepdown prepayment penalty. I did not find them via Bigger Pockets but rather through another investor, who had them quote on project for them. I'll call you in the morning to talk about your loan product options.

    Thanks!

    0Reply
  • Nick BelskyBusiness Member
    Lender · Orlando, FL · Member since 2021 · 1k+ posts · 704 votes
    3y

    @Ted Freemyer

    Not too bad of terms, but others are similar.  All depends on a lot of things.

    No experience with or have ever heard of that lender, but I will look into them as well.  Lots of STRs deals going on right now.

    Cheers!

    [email protected]
    Belsky Mortgage, LLC522 Reviews
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    1Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Ted Freemyer:

    Looking for some feedback if anyone has used Launch Financial Group for their DSCR loan on STR. I've recieved many quotes and preapprovals and they came back with the most competitive rate and terms for what we are looking to do. I haven't, however, found much info on them as an institution so looking here. Thanks in advance! Here is their link.

    https://www.launchfg.com/


     Hey Ted, 

    Depending on the LTV, FICO, and experience, 7.25% isn't too far off from what you can get on a DSCR loan.

    I would go a step further and ask about their funding times, process, and track record. The last thing you want to do is move forward with what seems like a great deal but not be able to close. 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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    0Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    I have not heard of them, but I would make sure, especially since they seem to be a new player in the space, to ask them the questions that are outlined on the "Best Questions to ask your DSCR lender for STRs" post on this forum: https://www.biggerpockets.com/...

    15Reply
  • Ted Freemyer
    OP
    Investor · Knoxville, TN · Member since 2021 · 3 posts · 2 votes
    3y

    Thank's everyone! This is our first look at DSCR as we've gone conventional up to this point. I recived 4 other quotes and all others with similar terms were 8%+. FICO is 780+ and currently have 4 other investment properties including 2 STRs in the same market we are trying to close on in West Virginia.

    0Reply
  • Nick BelskyBusiness Member
    Lender · Orlando, FL · Member since 2021 · 1k+ posts · 704 votes
    3y

    I inquired with Launch and they are a broker, not a lender.  I was contacted by Mike Grimes, whom confirmed they are a broker. 

    Cheers!

    [email protected]
    Belsky Mortgage, LLC522 Reviews
    WebsiteView Page
    0Reply
  • Jennifer L.
    Real Estate Broker · Daytona Beach, FL · Member since 2024 · 2 posts · 4 votes
    2y

    These guys are a joke. My customer went to them 1 month ago with property criteria and was told they could do the loan no problem; only to be told days before closing the property does not qualify. Would not trust them! Run!

    2Reply
  • Roque MirandaPro Member
    Rental Property Investor · Miami FL · Member since 2024 · 61 posts · 34 votes
    2y

    Hi, good feed back, I was just talking to JOEL from Launch Financial, for some small deals in Montgomery AL. we want to start doing.

    Anyone that you guys can recommend for private lending for this area?

    Also, what you guys think about Montgomery, i have been doing some research and so for I like what I see. THANK YOU ALL!

    0Reply
  • My-Anh Tran
    Member since 2024 · 1 post · 0 votes
    2y

    Hello Ted - I’m receiving similar offer from Launch Financial Group and having the same question. Did you decide to go with Launch and if so, would you mind sharing your experience? Thank you! 

    0Reply
  • Sylvie Kuzminski
    Investor · Cleveland, OH · Member since 2024 · 7 posts · 7 votes
    2y

    Hi All. I buy MF via DSCR loans and I have done 2 deals through Launch Financial so far.

    First of all- Launch Financial is NOT a direct lender. They take a comission and are a middle man with the actual lenders. My experience has been less than stellar and my real estate agent is also not a big fan. My main issue is that they misrepresent themselves as a direct lender. When I first spoke with them and asked if they are a lender, the response is "we do make loans," or something along those lines, but it was not disclosed that they are in actuality a broker. Issue two is that because it is essentially a game of telephone, there are delays and many misunderstandings. 

    My current deal has been delayed for over 30 days because the Launch rep wasn't aware that you cannot wire money from an offshore account- by federal regulation, the money must season in a US bank account for 30 days. This rep boasts about how they close hundreds of loans, etc etc but didn't know about this regulation. That aside, once my funds had seasoned there was further delay because I got more requests for documentation (that could have been requested during the month that we were twiddling our thumbs and waiting for my funds to season). The rep became extremely rude and verbally abusive on a phone call with myself and my agent.. I'm frankly blown away this this guy has a job. 


    Anyways- the good: For an entry-level investor, you will not have many other options. Most lenders want to see experience. Launch is one of the few who work with newbies. Even if you attempt to contact the lender directly, they will not speak to you- you will be redirected to Launch. So if you want to cut out that commission - sorry, hasn't worked. They do not set the rates or terms- this is obv the lender. In general, the minimum loans I've seen are 100k (individual properties can be lower if you are buying multiples from the same owner but the loan still must total 100k-ish). Down payments are 20-25% (I think I've seen them advertise 15% at some point- but these are for large loans for $1m). Interest rates are comprable to market. 

    3Reply
  • Sylvie Kuzminski
    Investor · Cleveland, OH · Member since 2024 · 7 posts · 7 votes
    2y
    Quote from @Jennifer L.:

    These guys are a joke. My customer went to them 1 month ago with property criteria and was told they could do the loan no problem; only to be told days before closing the property does not qualify. Would not trust them! Run!


    I believe this. They don't really know what they are doing. Also, for DSCR, they do not use the actual rental income on tenant-occupied houses. They pull their own numbers out of thin air. So while the actual ratio might be 1.8 or 2, they will come back with 1.0- no justification, no comps to show.

    2Reply
  • Cameron Martin
    Member since 2024 · 1 post · 0 votes
    1y
    Quote from @Sylvie Kuzminski:

    Hi All. I buy MF via DSCR loans and I have done 2 deals through Launch Financial so far.

    First of all- Launch Financial is NOT a direct lender. They take a comission and are a middle man with the actual lenders. My experience has been less than stellar and my real estate agent is also not a big fan. My main issue is that they misrepresent themselves as a direct lender. When I first spoke with them and asked if they are a lender, the response is "we do make loans," or something along those lines, but it was not disclosed that they are in actuality a broker. Issue two is that because it is essentially a game of telephone, there are delays and many misunderstandings. 

    My current deal has been delayed for over 30 days because the Launch rep wasn't aware that you cannot wire money from an offshore account- by federal regulation, the money must season in a US bank account for 30 days. This rep boasts about how they close hundreds of loans, etc etc but didn't know about this regulation. That aside, once my funds had seasoned there was further delay because I got more requests for documentation (that could have been requested during the month that we were twiddling our thumbs and waiting for my funds to season). The rep became extremely rude and verbally abusive on a phone call with myself and my agent.. I'm frankly blown away this this guy has a job. 


    Anyways- the good: For an entry-level investor, you will not have many other options. Most lenders want to see experience. Launch is one of the few who work with newbies. Even if you attempt to contact the lender directly, they will not speak to you- you will be redirected to Launch. So if you want to cut out that commission - sorry, hasn't worked. They do not set the rates or terms- this is obv the lender. In general, the minimum loans I've seen are 100k (individual properties can be lower if you are buying multiples from the same owner but the loan still must total 100k-ish). Down payments are 20-25% (I think I've seen them advertise 15% at some point- but these are for large loans for $1m). Interest rates are comprable to market. 

    Thank you for this, this was really helpful.
    0Reply
  • Christian Thomas
    Member since 2025 · 1 post · 0 votes
    1y

    Launch IS a Direct and Correspondent lender. Like most, they specialize in one aspect, and will "broker" or correspondent lend on others. In the case of DSCR, they do lend. For their fix and flips, they broker, but their pricing was extremely competitive.

    0Reply
  • Spencer Thomas
    Member since 2022 · 1 post · 0 votes
    1y

    I used them for a DSCR and Fix and flip, both in late 2024. For the DSCR on the 3 unit, they were the lender. On the fix and flip they brokered to Kiavi, but they were transparent about it and I got better pricing with them than if i went direct. I will use them again. That is my 2 cents
    -Spencer

    0Reply
  • Izabela MilanovPro Member
    Member since 2025 · 2 posts · 0 votes
    1y
    Quote from @Ted Freemyer:

    Looking for some feedback if anyone has used Launch Financial Group for their DSCR loan on STR. I've recieved many quotes and preapprovals and they came back with the most competitive rate and terms for what we are looking to do. I haven't, however, found much info on them as an institution so looking here. Thanks in advance! Here is their link.

    https://www.launchfg.com/

    Hi Ted,

    Have you ended up using them? I have also received a quote from them and am curious about info.

    Thanks,

    Izabela


    0Reply
  • Char Hatch
    Real Estate Agent · Mesa, AZ · Member since 2020 · 6 posts · 3 votes
    1y

    I am a realtor and my buyer wanted to use them for a DSCR Loan. It has been an absolute nightmare. We are 2.5 weeks after our original 4 weeks closing date and there is really no reason why we haven't closed yet. I would advise against them at all cost!!

    1Reply
    • Zach Edelman
      Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
      1y
      Quote from @Char Hatch:

      I am a realtor and my buyer wanted to use them for a DSCR Loan. It has been an absolute nightmare. We are 2.5 weeks after our original 4 weeks closing date and there is really no reason why we haven't closed yet. I would advise against them at all cost!!

       @Char Hatch are you still mid process? Would be happy to save the deal. 

      0Reply
  • Char Hatch
    Real Estate Agent · Mesa, AZ · Member since 2020 · 6 posts · 3 votes
    1y

    I think we are too far down the rabbit hole at this point. But I will keep you in mind if my client wants to continue doing DSCR loans.

    1Reply
    • Zach Edelman
      Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
      1y
      Quote from @Char Hatch:

      I think we are too far down the rabbit hole at this point. But I will keep you in mind if my client wants to continue doing DSCR loans.


       No worries! Best of luck with closing. :)

      0Reply
  • Steven WernerPro Member
    Member since 2019 · 16 posts · 2 votes
    7mo

    These people at Launch FG are killing me with additional fees. I would not deal with them. I am close to telling them to forget about the deal we have and finding another true DSCR lender.

    0Reply
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