Grow your real estate investing business with the most competitive and transparent private lender for bridge loans (hard money, fix & flip, rehab, ground up construction), DSCR rental loans.

Private Lender for DSCR Loans and Fix & Flip Loans | OfferMarket

Private Lender for DSCR Loans and Fix & Flip Loans

<br>

These are tools and resources that you might find helpful while mastering all aspects of real estate.

Real Estate Tools & Resources - OfferMarket

Real Estate Tools & Resources

<div><p align="center"></a></p> <iframe src="https://www.mortgagecalculator.org/webmasters/?downpayment=62500&homevalue=250000&loanammount=187500&interestrate=4.0&loanterm=30&propertytax=2500&pmi=1&homeinsurance=1000&monthlyhoa=0" style="width: 100%; height: 1200px; border: 0;"></iframe>
    <div style="font-family: Arial; height: 36px; top: -36px; padding: 0 8px 0 0; box-sizing: border-box; text-align: right; background: #f6f9f9; border: 1px solid #ccc; color: #868686; line-height: 34px; font-size: 12px; position: relative;"> <a style="color: #868686;">Mortgage Calculator powered</a> by MortgageCalculator.org</div>
  </div>

Use our mortgage calculator to understand your monthly payments for your primary residence or investment property.

Mortgage Calculator - Real Estate Resources - OfferMarket

Mortgage Calculator

<br>

## Real Estate Valuation for Sellers

If you're wondering "what's my house worth?" or "how much can I sell my house for?", we are here to help.

<br>

## Real Estate Valuation for Buyers

If you want to buy a house buy you aren't sure how much it's worth, we are happy to provide you with a free real estate valuation estimate.

<br>


<iframe src="https://docs.google.com/forms/d/e/1FAIpQLSduHNHtER_O3QY82_-KQnibTm4lnKNz3Dyl23IV6_yvgfyJsA/viewform?embedded=true" width="640" height="1193" frameborder="0" marginheight="0" marginwidth="0">Loading…</iframe>


Receive a free real estate valuation for your house, or a house you are interested in buying.

Free Real Estate Valuation - OfferMarket

Free Real Estate Valuation

<br>

Buying real estate off-market should not be reserved for a select few experienced investors. Whether you are buying your first home or your 1,000th rental property, we are here to help you discover, buy and successfully achieve your investment goals.

<br>

We are on a mission to change how real estate is purchased. When considering buying off-market wholesale properties, you probably have some concerns. Sure, the price may be be lower, but will this deal come with headaches?

<br>

OfferMarket is bringing a new standard to off-market real estate. We eliminate unnecessary commissions and fees and pass on the savings to sellers and buyers. The goal for every single transaction processed on our platform is to be a win-win for you and the seller.

<br>

## We work with all kinds of real estate buyers:

<br>

- Rental property investors
- Fix and flip investors
- Institutional investors
- First-time investors
- First-time home buyers

<br>

## Types of real estate available on the OfferMarket platform:

<br>

- Single-family residential
- Multi-family residential
- Mixed residential and commercial

<br>

## We eliminate the fees that the seller has to pay and pass on the savings to you.

<br>

|     Comparison    |  OfferMarket | Traditional Brokerage |
|:-----------------:|:------------:|:---------------------:|
|     Commission    |      0%      |         5 - 6%        |
|    Concessions    |      0%      |         0 - 2%        |
|      Repairs      |  $0 (AS IS)  |         0 - 2%        |
|      Showings     |       1      |           10          |
| Closing Timeframe | 30 - 45 days |        60 days        |
|   Closing Costs   |    0 - 2%    |         1 - 3%        |

Learn about the benefits of buying off-market real estate. Buying wholesale real estate is longer just for the inner-circle of privileged investors. Save money, save time, avoid competition.

Why Buy Off-Market Real Estate? - OfferMarket

Why Buy Off-Market Real Estate?

<br>

The well-being and safety of all parties is our foremost priority. Please take a moment to review the Centers for Disease Control and Prevention's COVID-19 best practices. By participating in an OfferMarket Safe Showing, you acknowledge and agree to our policy detailed below and agree to release OfferMarket of any liability.

<br>

## Sellers, property managers and tenants

<br>

Selling your house or rental property during the coronavirus pandemic can certainly be stressful. The last thing you want is strangers walking through your home on short notice.

<br>

1. An OfferMarket representative will confirm a date and time typically with 48 hours notice (no less than 24 hours notice) of the scheduled Safe Showing.
2. If you have tenants living at the premises, you are responsible for providing them with at least 24 hours notice of the scheduled Safe Showing.
3. We ask that you and/or any tenants vacate the premises for the duration of the Safe Showing period -- typically 1 to 2 hours.
4. OfferMarket's representatives (no more than 2) wear protective face masks and are trained to maintain 6 feet of separation when interacting with anyone at the premises. For occupied properties, OfferMarket's team member may use an infrared thermometer for touch-less temperature check.
5. If the premises is vacant, OfferMarket will provide a lockbox and instruct buyer groups to secure the property after their Safe Showing.

<br>

## Buyers

<br>

1. An OfferMarket representative will reach out to you to understand your availability and set a tentative Safe Showing date and time-frame. 
2. The representative will confirm your reserved Safe Showing time the day prior to the Safe Showing.
3. To avoid delays, we ask that you arrive 10 minutes prior to your reserved Safe Showing time.
4. No more than 2 buyer groups are allowed to tour the premises at a time. Buyer groups must be limited to 3 people. If other groups are waiting for you to complete your Safe Showing, you must limit your Safe Showing to 15 minutes. The next scheduled buyer groups are allowed to enter once the previous groups have completed their Safe Showing and exited the premises.
5. In order to enter the premises, you must wear a protective face mask throughout the duration of your Safe Showing. Please maintain 6 feet from all other people both outside and inside the premises.
6. If the premises is vacant, OfferMarket will provide a lockbox code the day of your Safe Showing. By participating in a lockbox enabled Safe Showing, you are responsible for locking the premises upon your exit.

OfferMarket's Safe Showing Policy is designed to facilitate real estate walkthroughs that are safe and secure. Learn more about our professional Safe Showing process.

Safe Showing Policy - Safe Home Tours - OfferMarket

Safe Showing Policy

<br>

Looking for the best real estate investing books? These are our go-to recommendations if you want to learn about real estate investing and sharpen your skills.

<br>

## Landlording On Autopilot

<br>

![landlording-on-autopilot-by-mike-butler-book-cover_orig.jpg](https://cms.offermarket.us/uploads/landlording_on_autopilot_by_mike_butler_book_cover_orig_78ab6b4ec8.jpg)

<br>

A simple, no-brainer system for higher profits, less work, and more fun.

<br>

### Author: Mike Butler

<br>

### Summary: 

<br>

Learn how Mike Butler (VISTA Properties, Wealth Building 24-7) managed 75 rental properties in [Louisville, Kentucky](https://www.offermarket.us/markets/louisville-ky-real-estate) with a full time job before hiring his first employee. In this book, Mike Butler shares his system for rental property management. Spoiler alert, Mike's system is incredibly simple, thoughtful and can be implemented using your smartphone. It's no surprise Mike's portfolio is now over 500 properties. Mike leveraged some of the know-how he acquired as an undercover police detective to create his  simple yet robust property management system, that allowed him to keep his full time job. He shares secrets of maximizing rental income from good properties and turning around properties that aren't as performant. He dives deep into his methodologies, going as far as revealing all the exact tools and technologies he employs to run his real estate empire. The system is agnostic to locality where it's used, so it can be implemented in rural or urban settings with the same results. 

<br>

### Topics:

<br>

- Rental property investment strategy
- Landlord best practices
- Rental property management
- Tenant screening
- Section Eight

<br>

**[Buy On Amazon](https://www.amazon.com/gp/product/B07FJX6W1T/ref=as_li_tl?ie=UTF8&tag=rentstack-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=B07FJX6W1T&linkId=17300d84a75235cd7258648675c6a8dc)**

<br>

## The Book On Rental Property Investing

<br>

![the-book-on-rental-property-investing-by-brandon-turner_orig.jpg](https://cms.offermarket.us/uploads/the_book_on_rental_property_investing_by_brandon_turner_orig_c0ab82e75a.jpg)

<br>

How to build wealth and create passive income through smart buy and hold real estate investing strategies. The book also touches on a few topics in personal finance as it related to real estate investing. 

<br>

### Author: Brandon Turner

<br>

### Summary: 

<br>

Brandon Turner, a millionaire real estate investor, created a true crash course in rental property investing. If you are looking for a place to start, this book is for you. Learn about building your team, valuing properties, rehabbing, [BRRR](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) and so much more. The book offers many practical lessons, and talks about why some real estate investors fail, what common mistakes everyone should avoid and how to ensure a sustainable business. Four unique strategies are shown which made Brandon a successful investor and that can be easily replicated even by someone who is just starting out. The book goes on to offer insight on how to source deals and discern which ones are worth your time. Brandon focuses on being a real estate investor and not a real estate manager, he talks at length about pitfalls of managing real estate and how you can avoid doing labor intensive tasks that suck up your time and instead focus on finding premium deals. Finally, to wrap things up, he presents ideas and methods of getting financing for your deals, in any market condition as well as ways to minimize your tax consequences.

<br>

### Topics:

<br>

- Rental property investing
- Investing in real estate
- [BRRR](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) (buy, [rehab](https://offermarket.us/real-estate-glossary/rehab), rent, refinance)
- ARV (after repair value)
- Financing
- Rehabbing and renovations
- Landlord best practices

<br>

**[Buy On Amazon](https://www.amazon.com/gp/product/099071179X/ref=as_li_tl?ie=UTF8&tag=rentstack-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=099071179X&linkId=2605628342d3034818b7287049adaf25)**

<br>

## Buy, [Rehab](https://offermarket.us/real-estate-glossary/rehab), Rent, Refinance, Repeat

<br>

## The [BRRR](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) rental property investment strategy made simple.

<br>

![buy-rehab-rent-refinance-repeat-by-david-green_orig.jpg](https://cms.offermarket.us/uploads/buy_rehab_rent_refinance_repeat_by_david_green_orig_56f4a2967b.jpg)

<br>

### Author: David Greene

<br>

### Summary: 

<br>

Learn how to build your rental property portfolio by buying undervalued fixer-uppers in cash, cost effectively renovating, renting and refinancing. With the [BRRR](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) method, you can pull out all of your invested capital and then some if you "keep the water in the bucket" through the [BRRR](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) process. The book also highlights the importance of [free cash flow](https://www.offermarket.us/real-estate-glossary/free-cash-flow) to protect your downside. The book provides a concrete plan for getting started, even with small capital investment. Systems for spotting ideal deals that should be acquired. Methods of negotiating with sellers to lock in ideal prices. Ways on how to recover most of the invested capital quickly in order to reinvest it in the next deal. Ways to increase property value and curb appeal to have better rental outcomes. David highlights importance of demographic research in his approach and how it helps him identify up and coming areas where rental markets might be heating up before competing investors swoop in and scoop all the deals. Finally, how to recruit talent to help you run your growing real estate portfolio and grown your wealth. 

<br>

### Topics:

<br>

- Rental property investing
- [BRRR](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) (buy, rehab, rent, refinance)
- ARV (after repair value)
- Property management outsourcing
- [Hard Money Lenders](https://www.offermarket.us/real-estate-glossary/hard-money) and [Private Lenders](https://www.offermarket.us/real-estate-glossary/private-lender)
- [Cash On Cash Return](https://www.offermarket.us/real-estate-glossary/cash-on-cash-return)

<br>

**[Buy On Amazon](https://www.amazon.com/gp/product/1947200089/ref=as_li_tl?ie=UTF8&tag=rentstack-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1947200089&linkId=01967565381716d96fed3978a222c5a4)**

## Rich dad poor dad

<br>

## The book highlights philosophical differences of people that work for employers versus employers themselves

<br>

![richdad_6ba8f1accf.png](https://cms.offermarket.us/uploads/richdad_6ba8f1accf.png)

<br>

### Author: Robert T. Kiyosaki

<br>

### Summary: 

<br>

Robert, an experienced investor, presents several anecdotes from his childhood to show the differences in mindset between his biological dad who always worked for someone and the dad of his best friends, who was an employer for other people. His 'rich' dad taught him the value of time, money and assets, setting Robert on a life long path to accumulate appreciating assets, such as rental investment properties. The book explains how Robert accumulated assets using his day job and invested in rentals to generate passive income and grow his own rental portfolio while adhering to the philosophy of living below his means so he can maximize his investment cashflow. One anecdote from the book, is that Robert waited extra few years so his business could purchase his first Porsche in a tax protected way instead of him buying it outright. One great take away from the book that everyone should remember, is that employer will never give you a raise you truly deserve, only you can give yourself that raise. That philosophy made him work just hard enough for someone else not get fired, instead of breaking his back to get a few percent raise every year. He used his extra time to build his own rental empire.

<br>

### Topics:

<br>

- Rental property investing
- [Tax lien certificates](https://www.offermarket.us/real-estate-glossary/tax-lien-certificates) 
- Mindset of employees vs employers
- How to be a rental property investor
- How to kick start your real estate business
- Long term mindset

<br>

**[Buy On Amazon](https://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1612680178/ref=as_li_tl?ie=UTF8&tag=rentstack-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1947200089&linkId=01967565381716d96fed3978a222c5a4)**

The best real estate books for rental property investing, property management, fix and flip, financial independence and other real estate topics.

large_Best Real Estate Books - MetaImage.jpg

medium_Best Real Estate Books - MetaImage.jpg

small_Best Real Estate Books - MetaImage.jpg

thumbnail_Best Real Estate Books - MetaImage.jpg

Best Real Estate Investing Books.jpg

Best Real Estate Books - OfferMarket

Best Real Estate Books

<br>
<br>

## How much will you save when you sell your house without an agent?

<br>

<div class="calconic-calculator"  data-calculatorid="5f519ace591ad3001e1580d9"></div>
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  (function() { var qs,j,q,s,d=document, gi=d.getElementById,
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</script>

<br>

When you sell your house with OfferMarket, you avoid incredibly inefficient transaction fees.

<br>

|     Comparison    |  OfferMarket | Traditional Brokerage |
|:-----------------:|:------------:|:---------------------:|
|     Commission    |      0%      |         5 - 6%        |
|    Concessions    |  0% (AS IS)  |         0 - 2%        |
|      Repairs      |  $0 (AS IS)  |         0 - 5%        |
|      Showings     |       1      |           10          |
| Closing Timeframe | 30 - 45 days |        60 days        |
|   Closing Costs   |    0 - 2%    |         1 - 3%        |

<br>

<br>

## Sell your house without paying any commissions or fees using [OfferMarket](https://offermarket.us/sell)


How much can you save when you sell your house without a real estate agent? Use our Seller Savings Calculator to explore your savings when you sell with OfferMarket.

Seller Savings Calculator - OfferMarket

Seller Savings Calculator

<br>

## A smarter way to sell your house

<br>

## Until now, real estate has been and extremely illiquid asset class, with incredibly high transaction costs.

<br>

At OfferMarket, we are changing that. We use modern technology and a streamlined workflow to eliminate unnecessary transaction costs and make buyers compete for your property.

<br>

It's not just about how much you sell your house for, it's about your <u>net proceeds</u>.

<br>

If you are like the majority of American homeowners, your house may be your most valuable asset. You should not have to pay a ridiculous percentage to sell your house. The costs of selling your house including commission, service fees and repairs is out of hand:

<br>

- Selling with an agent: 7% - 10%
- Selling to an iBuyer: 5% - 14%

<br>

## You should not have to pay any fees to sell your house fast and competitively

<br>

We have identified the keys to selling your house fast, hassle-free and for higher net proceeds than traditional real estate transactions:

<br>

✅  make buyers aware<br>
✅  make buyers compete<br>
✅  eliminate unnecessary costs<br>

<br>

Create your free listing or request an instant offer today!

<br>

It's not about how much you sell your house for, it's about your net proceeds. Learn about the benefits of selling your house off-market on the OfferMarket real estate marketplace.

large_Why Sell With OfferMarket - MetaImage.jpg

medium_Why Sell With OfferMarket - MetaImage.jpg

small_Why Sell With OfferMarket - MetaImage.jpg

thumbnail_Why Sell With OfferMarket - MetaImage.jpg

Why Sell With OfferMarket - MetaImage.jpg

Why Sell With OfferMarket? - OfferMarket

Why Sell With OfferMarket


<br>

<div class="calconic-calculator"  data-calculatorid="6238ddb132accc0021eea80b"></div>
<script>
  (function() { var qs,j,q,s,d=document, gi=d.getElementById,
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</script>

<br>

Use this cash offer calculator to help you determine your **offer price** based on [ARV](https://www.offermarket.us/real-estate-glossary/arv-after-repair-value), [rehab estimate](https://www.offermarket.us/real-estate-glossary/rehab), and strategy. This investment property offer price calculator is designed for [property in poor condition](https://www.offermarket.us/guides/selling-a-house-in-poor-condition). 

<br>

## How to estimate cash to close, fix & flip profit

<br>

Use our [Fix & Flip Profit Calculator](https://www.offermarket.us/tools/fix-and-calculator) to estimate **cash to close**, **profit**, and cash-on-cash return.

<br>

## Offer formula for fix & flip investors

<br>

Fix and flip investors, commonly referred to as "flippers", offer the lowest amount of any buyers. If you're wondering why this is, it's because flippers are looking to maximize their one-time profit on a given property. In order to justify the substantial risk (money and time) of buying and renovating a property in poor condition, the flipper needs to build in a margin of safety. Unlike rental investors, the flipper cannot recoup their investment over many years of increasing rent and property values. The flipper needs to safely account for a worthwhile near-term profit from buying, fixing and re-selling a property. Re-selling the property incurs transaction costs which include staging, photography, seller concessions (1-2%), closing costs (1-2%), and agent commissions (4% - 6%).

<br>

Purchase Price = ARV * [65% OR 70% OR 75%] - Rehab Estimate

<br>

## Offer formula for wholesalers

<br>

Wholesalers need to add their fee in, which reduced the offer price accordingly.

<br>

Purchase Price = ARV * [65% OR 70% OR 75%] - Rehab Estimate - Wholesale Fee

<br>

## Offer formula for rental property investors

<br>

Rental investors, on the other hand, are focused on the long term (cash flow and property value appreciation), and are willing to pay more.

<br>

Rental investors are typically targeting 10% to 25% below market value on their investment.

<br>

Purchase Price = ARV * [select: 65% to 85%] - Rehab Estimate

<br> 

## How To Calculate a Cash Offer

<br>

To calculate a cash offer, you need to start with your end-game. What is your goal? Is it to buy a long-term cash-flowing rental property? Or is it to make a quick buck fixing and flipping a distressed property?

<br>

At this step, you need to decide what is your target financial return, and on what timeline? Are you looking to make $25,000 net of all expenses with a quick 3 month flip, or are you looking to generate 15% cash on cash annual returns with a long term rental?

<br>

## How To Make A Cash Offer

<br>

Making a cash offer is easy. You can **[submit your offer terms](https://www.offermarket.us/listings/submit-offer)** and we will provide you with our standard investor purchase agreement that you can submit directly to the seller.

<br>

## Cash vs. Hard Money Lender for Fix & Flip, BRRR

<br>

Instead of using your own cash to buy a property, you can use a hard money fix & flip loan. A hard money or private lender can typically provide up to 90% of the purchase price and 100% of the rehab cost. Learn more about hard money interest rates and fee, and [get a quote](https://www.offermarket.us/loans) from [OfferMarket Capital](https://www.offermarket.us/capital), our hard money private lending division.

<br>

## How To Get A Cash Offer For My House

<br>

If you need to sell your house fast, a cash buyer is the way to go because there are no financing contingencies and risks associated with a lender declining the loan. Use our cash offer calculator to see what type of offer range you should expect if you sell to an investor buyer. You can post your house on our investment property marketplace and compare AS IS offers from verified buyers.

<br>

Calculate your cash offers with our Cash Offer Calculator.

large_Cash Offer Calculator.png

medium_Cash Offer Calculator.png

small_Cash Offer Calculator.png

thumbnail_Cash Offer Calculator.png

Cash Offer Calculator.png

Cash Offer Calculator | OfferMarket

Cash Offer Calculator

<br>

Use our **DSCR Calculator** to confirm your DSCR loan amount. Our DSCR loan calculator will help you screen rental property investment opportunities. Become an expert by understanding how things such as interest rate, rent, taxes, utilities, maintenance, property management and insurance affect DSCR.

<br>

<div class="calconic-calculator"  data-calculatorid="621867874052430021dcdebd"></div>
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</script>

<br>

## DSCR Calculation

<br>

DSCR or **Debt Service Coverage Ratio** is a metric used by private lenders to assess the financial strength of a rental property and determine the maximum eligible loan amount or loan-to-value (LTV).

<br>

Below, you will learn how DSCR is calculated a few different ways that produce slightly different values. The simplest way to calculate DSCR is to divide Net Operating Income (NOI) by Principal and Interest (P&I). 

<br>

Net Operating Income is Rent - Taxes - Insurance - Utilities - HOA - Property Management - Maintenance. A DSCR of 1 means the property generates just enough operating income to "service the debt" on the property. That means a DSCR of 1 is breakeven, $0 free cash flow. A DSCR greater than 1 means the rental property generates more than enough income to service its debt. A DSCR less than 1 means the property does not generate enough income to service its debt and therefore the owners need to pay out of pocket every month to cover the shortfall.

<br>

<table>
<thead>
  <tr>
    <th>DSCR</th>
    <th>Meaning</th>
  </tr>
</thead>
<tbody>
  <tr>
    <td>Less than 1</td>
    <td>Owner needs to pay out of pocket to cover monthly expenses</td>
  </tr>
  <tr>
    <td>1</td>
    <td>Owner breaks even, property covers its expenses exactly</td>
  </tr>
  <tr>
    <td>Greater than 1</td>
    <td>Owner receives excess cash, property more than covers expenses</td>
  </tr>
</tbody>
</table>

<br>

## DSCR Loan Calculation

<br>

In order to properly understand the concept of debt service coverage ratio, it's helpful to use an example:

<br>

Jenny is in contract to buy a rental property for $200,000. The property appraises for $200,000 with a $2,000 market rent opinion from the appraiser. Jenny's learns about a type of loan -- called a "DSCR loan" -- where the maximum loan amount is based on the cash flow of the property and she doesn't need to have a W2 or provide tax returns. The lender is able to provide up to 80% LTV ($160,000), as long as the debt service coverage ratio is at least 1.1 at 80% LTV. Jenny uses the calculator above to plug in the numbers and realizes that the property has a DSCR of 1.37 at 80% LTV, far more than the minimum required to qualify for 80% LTV.

<br>

Using the DSCR calculator not only helped Jenny understand what loan amount she qualified for, it gave her the confidence that she's buying a good deal, and it helped he understand the interplay between DSCR inputs including rent, taxes, insurance, and interest rates and how that affects cash to close and [cash on cash return](https://www.offermarket.us/real-estate-glossary/cash-on-cash-return). If the market rent were $1,500, Jenny would only qualify for 70% LTV because DSCR would be too low at higher LTVs.

<br>

## DSCR Loan Calculator

Lenders will have a minimum DSCR in their loan program guidelines, and if the DSCR is equal to or greater than that minimum, the property will qualify for [DSCR loans](https://www.offermarket.us/blog/dscr-loan-program) are business purpose loans that use the rental property as collateral, and are most commonly 30 year fixed rate mortgages. DSCR loan programs -- also known as non-QM or non qualifying mortgages -- do not look at the borrowers income or tax returns. 
<br>

DSCR loans are originated based on three core underwriting components:

<br>

1. Deal economics (DSCR) -- does the rental property generate cash flow?
2. Borrower credit score -- does the borrower have a history of paying their debts?
3. Borrower experience -- does the borrower have other investment properties and know what they're doing?

<br>

Borrower experience is less important because the borrower can always hire a property management company. Deal economics and credit score are deal breakers. Most rental property investors don't realize just how important their credit score, so read on on [how credit score affects your loan amount and interest rate for DSCR loans](https://www.offermarket.us/blog/how-credit-score-affects-ltv-for-dscr-rental-loans). Hint: 720 is the magic number!

<br>

See [DSCR Loan Interest Rate Index](https://www.offermarket.us/blog/dscr-loan-interest-rate-index).

<br>

## DSCR Calculation

<br>

Private lenders use two different formulas to calculate DSCR. It's important to understand each method in order to avoid max LTV surprises for your next DSCR loan.

<br>

## Max LTV for DSCR Loans

<br>

Many private lenders have a maximum LTV of 75% for cash out refinance, and 80% for purchases.

<br>

## DSCR for Vacant Rental Property

<br>

It is important to be aware that many lenders will utilize 90% of the appraised rent amount if your property is vacant at settlement. This will reduce your DSCR and may reduce the maximum LTV and loan amount.

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### DSCR Method 1: NOI ÷ Debt Service

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**NOI** = Rent - Taxes - Insurance - Utilities - HOA - Property Management - Maintenance

<br>

**Debt Service** = Mortgage Principal + Mortgage Interest

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### Method 2: (Rent - Maintenance - Property Management - Utilities)  ÷ PITIA

<br>

**PITIA** = Principal + Interest + Taxes + Insurance + Association Fees

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### Calculate DSCR

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Use the DSCR Calculator above to calculate DSCR using Method 1 and Method 2.

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Use our DSCR Calculator to see how much of a DSCR loan you qualify for! Run your rental property purchase and refi scenario through our DSCR loan calculator.

large_DSCR Calculator.png

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small_DSCR Calculator.png

thumbnail_DSCR Calculator.png

DSCR Calculator.png

DSCR Calculator | OfferMarket

DSCR Calculator

<br>

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<br>

## How to calculate profit for a fix and flip

<br>

To calculate profit when flipping a house, you need to factor in several costs.

<br>

**Initial purchase:**

<br>

- Purchase Price
- Closing costs (title, transfer and recordation)
- Lender fees (origination fee, legal, lender's title insurance)
- Insurance (builders risk policy)

<br>

**Sale:**

<br>

- Rehab costs (materials, labor, soft costs
- Agent/broker commission
- Closing costs (title, transfer and recordation)
- Lender fees (interest, draw fees)
- Taxes

<br>

## Hard money fix and flip loans

<br>

Most flippers use hard money from a private lender, otherwise known as a fix and flip loan. These are interest only loans specifically for fix and flip investors to purchase and rehab properties. Learn more about [fix and flip loans](https://www.offermarket.us/blog/bridge-loans-fix-and-flip-loans-hard-money).

<br>