A strategic expansion to support real estate investors
Upright, a real estate investment company and fix-and-flip lender, has rolled out its debt service coverage ratio (DSCR) rental loans.
The company, formerly known as Fund That Flip, said the addition of the DSCR loan offering is in response to growing demand from real estate investors who want to turn fix-and-flip projects into long-term rental properties.
“Many customers at first come to us for our fix and flip loans. Often, their exit strategy was to turn them into long-term rental properties, and we have previously had to refer them elsewhere,” said Brendan Bennett, vice president of revenue at Upright. “There was a piece of the puzzle missing. By introducing DSCR rental loans, we are better able to serve the needs of more customers throughout their entire real estate investment journey.”
The DSCR Rental Loans feature terms of up to 80% loan-to-value for purchases and refinances, a minimum loan amount of $75,000, and various single-family property types (modular, 2–4-unit residences, condominiums, townhomes, and multi-family properties up to 10 units) and loan products (15- and 30-year fixed, ARM, and interest-only).
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The loans require a minimum FICO score of 640 and focus on rental income without requiring personal or business income verification.
Upright’s expansion also includes a comprehensive suite of services for active and passive investors, from individual borrower-dependent notes to REIT-like funds.
“While the DSCR Rental Loan plus the Tools software is a powerful combination, real estate is a people business, and we take that very seriously,” Bennett said in a press release. “We talk personally with every developer with whom we work, often in person. We walk through nearly every property. We want to know how we can help them scale and talk about not just the current deal but the next one and the next. Anyone who has benefited from one of our hard money loans already understands our dedication to efficiency and extraordinary customer experience; that’s what we’re bringing with our DSCR product, too.”
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