Dr. Toby PotterCEO and Founder, The Unshakable Investor · Real Estate Investor Success Coach

DSCR Cash-Out Loans: Unlock Equity for Real Estate

Name: DSCR Cash-Out Loans: Unlock Equity for Real Estate
Uploaded: 2025-06-27T20:44:10+00:00
Duration: 1 min 25 s
Channel: Dr. Toby Potter
Description: In this video, the hosts introduce a newly launched closed‑end second cash‑out loan product that uses a Debt Service Coverage Ratio (DSCR) qualifier. The…

27 Jun 2025 · 1 min

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1:25

In this video, the hosts introduce a newly launched closed‑end second cash‑out loan product that uses a Debt Service Coverage Ratio (DSCR) qualifier. The loan enables residential real‑estate investors who secured low‑rate first mortgages between 2021 and 2024 to tap 10‑50% of built‑up equity without disturbing their original financing or incurring pre‑payment penalties. The product accepts DSCR thresholds as low as 1.0, allowing borrowers to qualify based on the cash flow of the property rather than traditional income verification. Use cases highlighted include purchasing additional investment properties, adding accessory dwelling units (ADUs) or extra units to existing multi‑unit homes, and generally expanding or improving a real‑estate portfolio. The speakers emphasize strong market traction, the flexibility of the product, and its role in supporting investor growth.

Chapters

Now, one other thing we actually rolled out in the last 90 days, which is getting a ton of traction, is we now have a closed-end second cash-out loan using a DSCR qualifier. So think about the production you've done over the last 5 years. Okay. If you were working with investors in '21 and '22, right? And they were 20 in '21 and they got into a DSCR at a phenomenal price.
4.5%, 5% is what we want to give up.
You don't want to give up that loan. No. But they built up equity anywhere from 10 to 50%, depending on where that property is.
Easily.
We can now allow them to take cash out of that property qualifying with DSCR calculation.
Right. So say we're in the 1.25%.
Actually, we'll go down to 1%.
1%. So, so 1, so 1 for 1.
Correct.
And they can take cash out and they don't have to disrupt their original financing.
Or if you did a loan for an investor in '23, '24 that's sitting on a 3 to 5 year prepay because it got them the best rate of the day.
Right.
They can now take cash out of that residence using a DSCR qualification on that property versus paying the prepay to get all right. Right. So they can continue to buy properties and invest or even improve that property. Right. We've got some clients out there that are looking for— they've already got a, a 2 or 3 unit and they want to figure out how to put an ADU or a fourth unit on the property. Yep. They can get cash out of that property through that DSCR closed-end second. To then move forward and continue their, their, their growth.
Yeah, that's amazing.
Yeah, it is. It's been a great year. We're doing a lot of great things to really support residential real estate investors.
That's amazing. Holy cow. I'm sitting there running through my mind all the deals I could send you right now.