Real estate investors that utilize the buy and hold and BRRRR methods of investing are frequently on the hunt for lenders that can support their specific needs and goals. This often means they are comparing terms and rates from different lenders or searching for the right company culture to match their objectives. Finding a lender that behaves more like a partner than a third-party service can be one of the most important pieces of achieving success in this industry, something ABL’s DSCR Team is certainly aware of.
Let us take a walk through Asset Based Lending and learn a little more about our dedicated DSCR team.
Step 1: Originators
The first step in the DSCR loan process is to reach out to a Loan Officer to discuss the potential deal. Loan Officers, also known as Loan Originators, are responsible for gathering the information to create a profile of the borrower and the project. The borrower profile details their credit score, liquidity, and experience, while the deal profile tackles the cashflow of the property, location, and operating costs as a rental.
Loan Officers use this information to determine the debt service coverage ratio and the best loan ABL can extend. Once the DSCR is determined, the LO will work on building a few loan term options for the borrower. ABL’s flexible DSCR loan options include 30-year amortizing, adjustable rate, or interest-only options, among others, allowing LO’s the opportunity to be creative when sizing up deals.
During this stage of the process borrowers have the advantage of direct contact and an open line of communication with their LO. Having the space to discuss any questions and completely understand each option means borrowers are fully equipped with the knowledge needed for their deal to be successful. LO’s move as quickly as their borrowers to get to the closing table, often in 20 days or less, with each member of the DSCR lending team working in tandem to reach this goal.
After the borrower has taken the time to evaluate each DSCR loan scenario, our Loan Processors start putting each piece of the puzzle in place. The first step is to use the information from the Loan Officer to develop a term sheet to send to the borrower and a credit authorization form.
Step 2: Processors
Borrowers will then officially agree to the loan terms by signing the term sheet and submitting the completed credit authorization form, allowing our team to run a credit and background check. As with the LO’s, the ABL Loan Processors are moving quickly to gather each puzzle piece to close loans. From the credit authorization form to the appraisal, our Processing Team stays on top of the details and third-party professionals, performing all the necessary follow-up to collect the required documents.
ABL’s Processing Team keeps the gears moving and the loan on track to close, all the while staying in close contact with the Loan Officer and borrower, maintaining transparency throughout the entire process.
Step 3: Underwriters
While the ABL Processing team is gathering the required information to close the loan, that information is being reviewed by an Underwriter.
The Underwriter is responsible for taking the information collected by the Processors, like credit history, monthly rent, and appraisal details, and uses it to calculate the project’s profitability and manage the exposure for both ABL and the borrower. Having these calculations performed throughout the process and evaluated on a case-by-case basis allows our Underwriters to think outside the box. As with Loan Officers and Processors, Underwriters can button-up these details as fast as they come in, pivoting on a dime if the calculations shift and change based on new information.
With programs built for investors by investors, ABL has created a process from start to finish that prioritizes the borrower, their experience working with us, and their long-term goals for real estate investing. One way ABL helps our borrowers reach their goals is to approach each deal with the same sense of urgency that our borrowers do.
Conclusion
The dedicated DSCR team of Loan Officers, Processors and Underwriters at Asset Based Lending work in tandem to develop loan programs that are flexible and aggressive, opening the door for more opportunities for our borrowers, and helping them scale their business. Throughout the DSCR loan process ABL prioritizes speed, flexibility, and transparency, supporting each borrower and always being available to answer questions and find solutions.
For more information about ABL’s DSCR Loan Programs contact us today.