Affluent cities such as Austin and Dallas undoubtedly serve as the crown jewels of the Texas real estate sector. These upscale markets teem with condos that continually increase in property value. But beneath the charm of these vibrant Texan cities lurks a significant obstacle for investors: exorbitant taxes, substantial insurance costs, and towering condo association fees. Often, the rental income these properties yield doesn’t cover these expenses. Traditional lenders typically fail to tackle these concerns, leaving investors high and dry when it comes to financing acquisitions or refinancing. Stratton Equities, however, emerges as a game-changer with its trailblazing “no ratio mortgage programs.”
Stratton Equities offers a unique approach to this predicament, eliminating the need to factor in the borrower’s personal income or the subject property’s debt service coverage ratio (DSCR). Debt servicing, a common term in real estate jargon, pertains to the costs tied to owning an investment property – taxes, insurance, mortgage payments, and condo association dues. Traditionally, potential rental income subtracts these costs to calculate the DSCR. However, in markets where the rental income falls short of these expenses’ cumulative total, securing a DSCR loan becomes an unattainable dream.
Stratton Equities breaks into this space with a practical solution: registering the property under an LLC. Despite properties not generating sufficient rental income, Stratton Equities empowers investors to finalize purchases or refinancing at a marginally lower loan-to-value (LTV). This strategy opens up a world of opportunities for real estate and mortgage professionals and Mortgage Brokers in the Texan markets, a world once shut by traditional practices.
Stratton Equities is not just addressing investment challenges in Texas real estate; they’re also seizing the potential of the flourishing Airbnb market. The popularity of short-term rentals has skyrocketed, and they typically bring in more revenue than long-term rentals. For instance, a 12-month lease might bring in $4,000 per month, while listing the same property as a short-term rental on Airbnb could rake in three to four times that amount in a month.
Despite this potential, numerous lenders overlook the higher short-term rental income when qualifying borrowers for loans. Stratton Equities, on the other hand, recognizes these rentals’ increased earning potential. By accounting for a property’s Airbnb rental history over the past 12 months, Stratton Equities enables borrowers to benefit from the higher monthly income, thus streamlining the debt service. Stratton Equities’ entrance into the Texas market brings swift closing times, highly competitive interest rates, and a broad network within the Texas real estate sector. Their efficiency and vast connections undeniably serve as valuable resources for borrowers and investors, improving their experiences and opportunities.
Stratton Equities’ advent into the Texas real estate market is a clear demonstration of its dedication to fostering investor success. By identifying and addressing borrowers’ challenges, Stratton Equities continues to shape a vibrant and inclusive real estate scene.
For more insights about Stratton Equities and its innovative approach to real estate investment, visit www.strattonequities.com. Stay in touch with Stratton Equities on Instagram, Facebook, and YouTube @StrattonEquities, LinkedIn @stratton-equities, and Twitter @Strattonequity.
