100% bank financing with 1.5 DSCR

Is this possible?
“100% bank financing with 1.5 DSCR”
if so please guide me if not why not?

lets say you found a residential building for $2 million but the DSCR is 1.5 or greater, wouldn’t that make the building worth more that it’s selling price?

$2 million price
$45,000 monthly gross income
$22,500 monthly net operating income (50% to be really conservative)
$15,000 monthly mortgage of $2 million at 8% over 30 years
$7,500 monthly net cash flow

Wouldn’t a scenario like this make sense to the bank?

A few weeks ago I would have said, “NO. It does not exist.” Come to find out…100% commercial financing does exist. You need great credit and some cash in the bank, but yes it does exist.

Regards,
Pat Lawson

Pat-

Who is writing 100% commercial loans?

Betsy

Umm. Would you be upset if I said it was a secret? :-X

I’m a broker and honestly I’m still thinking about how to market this product.

So… how can I make money off my friends/colleagues?

:wink:
I’m sure you’ll find a way.

That’s it! I quit!

Patrick has found the Holy Grail and He is going to keep it to himself!

I am taking my toys and am going home! :cry:

Didn’t mom tell you that it is nice to share?

or was that don’t play in the street?

or was it don’t eat yellow snow?

I am so confused ???

Ha! Had to add my 2cents!

More bad dog food!

You’ve probably had enuff coffee this morning Mark!

Keith

I willing to co-broker. ;D

Just one more cup! :banana:
Wow! I am feeling it now!!

There we go! I’ll drink to that!

what is dscr??

wendy

DSCR = Debt Service Coverage Ratio

Check out: http://www.reiclub.com/real-estate-abbreviations.php or click the “Investing Abbreviations” link on hte left side of the page.

Keith

Can’t ay I blame you Pat!!! Capitalism RULES!!!

Could someone show ME where the cofee is???