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in Beverly Hills, CA
Beverly Hills investment properties demand different financing than standard homes. DSCR loans and hard money both skip personal income verification, but they serve completely different investment strategies.
DSCR works for cash-flowing rentals you plan to hold long-term. Hard money finances quick flips and renovations where speed matters more than rate. Most Beverly Hills investors need both options in their toolkit.
DSCR loans qualify you based on rental income divided by the mortgage payment. You need a ratio above 1.0 for most lenders, meaning the property pays for itself. These are 30-year fixed loans with rates comparable to conventional financing.
Down payments start at 20% for strong properties. Credit minimums run 620-680 depending on the lender. You'll get better terms than hard money because this isn't bridge financing—it's a permanent hold loan. Rates vary by borrower profile and market conditions.
Hard money lenders fund based on the property's after-repair value, not your income or the current condition. Approvals happen in days, not weeks. These are 6-24 month loans with higher rates because you're paying for speed and flexibility.
Expect rates between 8-15% with 2-5 points upfront. Down payments range from 10-30% depending on experience and deal structure. Most Beverly Hills flippers use hard money to close fast, then refinance into DSCR or sell. Credit matters less than your exit strategy.
Timeline separates these loans immediately. DSCR takes 30-45 days to close but costs half what hard money charges. Hard money closes in under a week when you need to beat other buyers or start renovations fast.
Use DSCR when you're buying a property that's already rented or rent-ready. Use hard money when the property needs work before it can cash flow or when you're flipping within a year. Beverly Hills deals often require hard money to acquire, then DSCR to refinance once stabilized.
Choose DSCR if you're buying a turnkey rental or a property that needs minor cosmetic work. You'll save thousands in interest with long-term fixed rates. This works for investors building a portfolio, not flipping properties.
Choose hard money if you need to close in days, the property requires major renovation, or you plan to sell within 12 months. Beverly Hills properties move fast—hard money lets you compete with cash buyers. Just have a clear exit plan before you commit.
Only if it's minor work and already rented. Major rehabs require hard money first, then refinance to DSCR once it's stabilized and generating income.
Hard money runs 8-15% with 2-5 points upfront. DSCR typically costs 6-9% with standard closing costs, saving you significantly on 12-month interest.
Most lenders prefer it but focus more on the deal itself. First-time flippers often need larger down payments or lower loan-to-cost ratios.
Yes, that's the standard strategy. Acquire and renovate with hard money, then refinance into 30-year DSCR once the property is rent-ready or rented.
DSCR handles 2-4 units well if they're already producing income. Hard money works for acquiring duplexes or fourplexes that need repositioning before stabilization.