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Fast Approval
No Income Verification Needed
Financial Freedom
Allay Capital streamlined the process, ensuring the borrower closed the deal on time.
The borrower’s self-employed status wasn’t a hurdle because the loan qualification was based on the property’s rental income.
The borrower now enjoys passive income and the flexibility to grow their portfolio further.
Challenge
The borrower, an experienced investor, wanted to acquire a $1.2M property and turn it into a long-term rental. Being self-employed, they needed a financing solution that didn’t rely on traditional income verification.
The goal was to secure a loan that would allow the rental income to cover the mortgage while also generating profit.
Kitchen/Living Space
The property was purchased Vacant, this is the open format kitchen/living space.
Stairs to second floor.
Unfurnished space, stairs to the second floor.
Renovated Kitchen
Updated Kitchen.
Kitchen/Living Space
The property was purchased Vacant, this is the open format kitchen/living space.
1/4
Solution
Allay Capital provided a DSCR Loan tailored to the vacant property’s income potential, offering 80% financing with a loan amount of $960,000. The loan was approved based on the property’s Debt Service Coverage Ratio (DSCR), demonstrating that the rental income would comfortably cover the monthly mortgage payments.
Result
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Cash Flow Positive:
The rental income exceeds the monthly mortgage payment, allowing the borrower to profit every month while building equity in the property.
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Passive Income Stream:
Each month, the tenant's rent covers the mortgage, and the excess becomes the borrower’s discretionary income. This income can be reinvested, saved, or used as a down payment for the next property.
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Long-Term Wealth Creation:
By leveraging a DSCR loan, the borrower has turned this property into a reliable passive income source. Over time, the mortgage is being paid down by rental payments, further increasing equity in the property.
Conclusion
​This case demonstrates the power of a DSCR Loan for investors seeking financial freedom through real estate, without the hassle of traditional bank loan requirements. By focusing on property performance instead of personal income, debt to income ratios, etc., Allay Capital helped this borrower secure funding, create consistent cash flow, and pave the way for future investments.
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