Why DSCR Is the Clean Exit
Hard money loans were designed as short-term acquisition and rehab vehicles. The intended exit is permanent financing. For most active real estate investors, self-employed, LLC-structured, with multiple properties, conventional permanent financing is blocked. DSCR is the clean exit path that requires zero income documentation and closes in 28 days.
Step 1: Confirm the Property Is Refinanceable
Before submitting, verify:
- Property is rent-ready or currently occupied by a tenant
- No outstanding liens or title issues beyond the hard money loan
- LLC vesting matches expected borrowing entity
- Estimated ARV or current value supports the loan amount you need
Step 2: Run the DSCR Math
Monthly Rent ÷ Estimated New PITIA = DSCR
Target: 1.0+ for standard · Minimum: 0.75 for expanded
Example:
Rent: $1,900/month
New loan $180,000 at 7%
PITIA estimate: ~$1,440/month
DSCR: 1,900 ÷ 1,440 = 1.32 ✓
Step 3: Submit Your Deal
Submit via the intake form. Include: property address, current hard money balance, estimated ARV or current value, monthly rent or market rent estimate, and credit score range. No credit pull at this stage. We review and send your rate within 24 hours by text or email.
Step 4: Receive Your Rate
Rate response within 24 hours. Review the rate, LTV, and estimated cash out (if applicable above the hard money payoff). Decide whether to proceed. No commitment at this stage.
Step 5: Application and Appraisal
Formal application triggers the appraisal order immediately. A licensed third-party appraiser confirms current value and, if no executed lease exists, completes a market rent schedule. Typical appraisal timeline: 5–10 business days.
Step 6: Underwriting and Close
Underwriting reviews credit, appraisal, lease or market rent schedule, and entity documents for LLC closing. No income documentation is required. The hard money loan is paid off in full at closing. Any net proceeds above the payoff are wired to you. Average total timeline: 28 days from application.
Hard Money Balloon Approaching?
Submit today. Average close in 28 days. Fastest: 21 days.
Submit Deal Summary →What If My Hard Money Balloon Is Imminent?
Submit immediately. Average close time is 28 days from a complete application. Fastest close on a qualifying transaction with complete documentation is approximately 21 days. The sooner you submit, the better your probability of closing before the balloon date. Waiting is the most expensive thing you can do when a balloon is approaching.
Common Hard Money Exit Scenarios
- BRRRR renovation complete, ready to exit hard money into 30-year fixed
- Renovation ran long, balloon arriving before tenant has been placed
- Bridge loan on a buy-and-hold property: ready for permanent financing
- Fix-and-hold pivot: decided to keep the property after renovation