I've connected with a ton of hard money lenders who offer DSCR loans, but at not so favorable interest rates.

When policy makes that viable for banks and institutions, adoption accelerates.Tokenization doesn’t favor frothy, unstable markets.It favors durable assets with predictable performance.It favors places where underwriting still works.In other words, it favors markets like Louisville.Delistings elsewhere push capital inward.

The favorable leverage, when used responsibly, can be far more impactful than immediately titling a property in an LLC.If the purchase will be strictly an investment and FHA financing is not available, acquiring the property in an LLC from the outset is typically the better approach.

The good news is house hacking allows you to navigate these laws more favorably with how New Jersey is structured.   

Now the DSCR lender ordered an appraisal which came back favorable, however they will not use the appraised value, instead the lesser list price which is significantly lower than the appraised value, (I deliberately had it listed lower to attack buyers).

With all other things being equal (such as credit score, LTV, etc), the low property tax assessment may get your Dad a more favorable rate because the lower expenses will result in a higher DSCR.    

With $10K liquid, focusing on markets or properties where leverage works in your favor will be key.

Instead, we were able to negotiate highly favorable seller finance terms with low money down (10%) and a low (Sub 6%) interest rate at a sub 2m purchase price, which completely changed the risk profile of the deal.That’s something I’m seeing more of right now especially with new builds.

The screening fee of $45 is not a lot, but I suspect this could be a test to ask for more favors in the future.

Momentum favors action.