DSCR loans are for investors seeking rent-ready properties that require little to no work at all, but cash flow well enough for the investor to make a monthly profit that becomes passive income over time. Brokers should invest time into becoming experts on these types of projects, so when these deals cross their desk, they are prepared to concisely answer any questions and be ready to offer solutions to the problems their clients are facing.
Problem solving and program understanding
Brokers work best with investors when they share the same business mindset, so it is imperative for brokers to communicate with transparency to their clients. Take the time to learn what their overall goals and objectives are on their investment journey. Whether it’s fix and flips or long-term rentals, any scenario can be susceptible to hiccups, so taking the time to understand exactly what lenders want in a deal can allow brokers to get ahead of any potential issues.
Knowing details like a lender’s experience requirements, minimum and maximum loan amounts, and minimum credit score right from the get-go can prevent unexpected issues from popping up in processing.
For example, if a borrower wanted to do a cash out refinance on one of their rental properties, the amount of leverage a lender can provide can depend on their credit score. And depending on the lender, the small difference between a 699 and a 700 credit score can have significant changes in pricing and loan amount. Taking the time to study the nuances of a lender’s loan programs can be the ultimate determinant in finding the right opportunity for investor clients.
A crucial but understated part of being a mortgage broker in the commercial space is knowing when a prospective deal isn’t going to work, and relaying that to their clients. A strong selling point brokers can present to their clients is that their success is your success. When advising investors on their prospective deals, brokers are committed to acting in their clients’ best interests.