Getting deals approved

[Ashanti Douglas]

What is the main thing that matters for getting approved for funding / loans / dscr lending?

[Seph Hancock]

For most real estate funding, approvals usually come down to a few core things:

• Deal quality
• Exit strategy
• Experience
• Liquidity/reserves
• Creditworthiness
• And whether the numbers actually make sense

For DSCR loans specifically, the property’s income is often more important than your personal income. Lenders mainly want to see that the rent can comfortably cover:

• principal
• interest
• taxes
• insurance
• and sometimes HOA

That’s where DSCR comes in.

A strong deal with:

• good cash flow
• realistic rehab numbers
• conservative leverage
• and a clear exit plan

will usually get much more attention than someone with a high income but weak numbers.

For fix-and-flip or bridge lending, lenders also focus heavily on:

• ARV accuracy
• rehab budget
• timeline
• and borrower experience

One thing newer investors underestimate:
Liquidity matters a lot right now. Many lenders want to know you can survive delays, vacancies, rate changes, or unexpected rehab issues without the project collapsing.

At the end of the day, lenders are really asking one question:
“How likely is it that we get paid back exactly as planned?”