Why they call it “Investor-Specific Financing”

• DSCR is the official name, but the framing matters.
• Conventional loans are still great (30-year fixed, strong rates) but:
• More hoops
• More documentation
• More friction
• Harder for business owners / complex income situations

What a DSCR loan is (and how it works)

• Debt Service Coverage Ratio underwriting focuses on the property’s ability to cover its own debt.
• Core concept:
• If rent covers (or nearly covers) the payment, it can qualify.
• Kevin gives a simple example:
• Rent $2,000 vs payment $1,800 → qualifies
• Even near 1:1 can qualify depending on lender guidelines.

Why this is a big win for business owners (and “interesting financials”)

• Many clients have complicated tax returns and multiple income streams.
• Conventional underwriting can feel burdensome—even demeaning—because of how intensely it scrutinizes personal finances.
• DSCR simplifies the borrower experience because it’s not about W-2 income and DTI.

LLC ownership + personal guarantee (the “clean structure” part)

• A major feature: buy in the name of an LLC (no post-close quitclaim dance).
• Still typically personally guaranteed.
• Kevin’s line worth clipping:
• “You’re the personal guarantor, but a personal guarantee doesn’t mean personal liability is unlimited.”

Avoiding the conventional 10-loan limit

• Conventional financing has the well-known 10-financed-property ceiling (often managed by splitting between spouses).
• DSCR loans:
• Don’t take one of those “10 slots”
• Can allow investors to scale further (20–30 properties possible, with increasing qualification standards as portfolios grow)

Rates, fees, and prepayment penalties (January 2026 reality)

• Historically DSCR carried higher rates/fees.
• But in the current market (January 2026), they note:
• DSCR rates can be similar to conventional
• Common caveat:
• DSCR loans often have a prepayment penalty
• Not a big deal for long-term holders (they’re not planning to exit in 2 years).

Will it show up on personal credit?

• Steve explains:
• With some lenders, yes; with others, no.
• Strategic Lending knows how to route borrowers based on that preference.
• On default and credit impact:
• Steve’s understanding: typically it would not report like a standard personal mortgage—because the loan is made to the LLC secured by the property—though consequences still exist.

What you need to qualify (simple but not “wild west”)

• Kevin emphasizes: this is not 2006-style “stated income” chaos.
• Typical DSCR pre-approval items discussed:
• Credit application + credit pull
• Proof of assets / bank statements
• Existing mortgage statements for financed properties
• Reserves: at least 6 months PITI beyond purchase/closing funds

The “new era” Moneyball stance: more conservative by design

• Their direction going forward:
• Push toward 30% down DSCR strategy more often
• Aim for a better ownership experience (less outside cash needed for property “messiness”)
• Key philosophical point:
• This isn’t about maximizing leverage; it’s about maximizing staying power.
• Closing CTA
• Kevin invites listeners to reach out with questions and book a call:
• dfy-realestate.com (Book Call button)
• kevin@dfy-realestate.com

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• Why Episode 138 marks the return to live podcast conversations in 2026
• Revisiting Micro-Wins to Millions with fresh investor perspective
• Redfin’s “Great Housing Reset” and what it really means (no hype)
• Mortgage rates dipping into the low 6% range—and why psychology matters more than math
• The hidden cost of sitting on the sidelines during high-rate years
• DFY transaction volume from 2022–2025 and what the slowdown signals
• How investor action during uncertainty led to appreciation, cash flow, and refi opportunities
• Why affordability is improving without a major price drop
• Pent-up housing demand and the herd mentality effect
• Why rents declined—and why they’re poised to rise again
• Political pressure around affordability and why it benefits long-term owners
• The pendulum theory: fear, greed, and slow-moving real estate cycles
• Why early 2026 may be one of the best entry points before momentum builds
• How to access Micro-Wins to Millions (audio, digital, and video book)
• Where to find DFY’s 12 years of transparent transaction reports
• Why now is the time to review your game plan—not wait for headlines

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👉 Join the list here

Book a call with Kevin and see what your personalized real estate roadmap could look like.
👉 dfy-realestate.com

Email Kevin directly: kevin@dfy-realestate.com

Learn more about DFY’s done-for-you investing approach at dfy-realestate.com

Core theme: The power of one choice can reverberate through generations.

1) Making Ripples

• 4 a.m., early flight, tired and irritable.
• Kevin judges a woman based on her appearance.
• She quietly pays for his items anyway.
• Lesson: small kindness can create massive impact.
• The ripple effect multiplies every time the story is shared.

2) Who are your heroes?

• We default to celebrities… but they rarely change our personal lives.
• Real heroes are often people close to us:
• parents, mentors, teachers, neighbors, friends
• Eight-year-old girl calls her dad her hero:
• he picked her up, cleaned her scraped knee, cared for her
• Big idea: heroism is usually ordinary faithfulness.

3) Principle-based Capitalism

• A defense of capitalism rooted in:
• honesty, integrity, hard work, frugality, giving back
• Critique: “profit first no matter what” is a distortion of true capitalism.
• DFY grew faster when the focus shifted:
• from tracking numbers → to tracking people’s progress
• from transactions → to leaving people better off
• Principle-driven companies outlast founders; profit-only organizations crumble.

4) The Power of One Property

• One rental purchase impacts many:
• mortgage team, agents, title, property manager, tenant, seller, you
• And you can benefit most over time through:
• cash flow, appreciation, tax benefits, principal paydown
• Compounding concept:
• one can lead to two, two can lead to four, etc.

5) Proof Through Repetition

• Eric buys first property: January 2012
• Adds multiple properties that same year
• By 2019: nine properties
• Outcome: retired, traveling, living life on his terms while DFY handled the heavy lifting

6) Micro-Win Challenge to End The Book

• Don’t overcomplicate the first step:
• 10-minute workout
• 5 minutes with your kids
• write one sentence
• drink one extra glass of water
• say a 30-second prayer
• gather loose change and deposit it
• Final reminder: you are one decision away.

Get weekly deals, market updates, blog posts, and more delivered straight to your inbox.
👉 Join the list here

Book a call with Kevin and see what your personalized real estate roadmap could look like.
👉 dfy-realestate.com

Email Kevin directly: kevin@dfy-realestate.com

Learn more about DFY’s done-for-you investing approach at dfy-realestate.com