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Skip Hard Money: DSCR Loans Explained—Lower Rates, Longer Terms, Faster Closings

By October 15, 2025Real Estate Pros Show

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Show Summary

In this conversation, Adrienne Galvan of Lendz Financial (NMLS#1891964) discusses the current real estate market, emphasizing the importance of leveraging existing interest rates for investment opportunities. She provides insights on refinancing strategies and the timing of market investments to maximize cash flow and portfolio growth.

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    Investor Fuel Show Transcript:

    Adrienne Galvan (00:00)
    Absolutely, we just closed a purchase in 10 days. As long as you’re willing to, you or your assistant willing to put in the work on the front end.

    These loans are very minimal documentation and we can close your deal in 10 days. So if you’re in a hurry and there was for some reason the investment property purchase or refi fell out of another lender and you’re on a time crunch, give us a call. Let us know. We’ll do our very best to get that closed quickly for you.

    Kristen (02:06)
    Welcome back to the Real Estate Pros podcast. I’m Kristen and I’m here with Adrienne Galvan, who is a wholesale mortgage banker. We’re going to get into the state of the market and all of her tips and tricks. So thank you so much for being here, Adrienne.

    Adrienne Galvan (02:18)
    Hey, thanks for having me today, Kristen. I’m looking forward to just letting everybody know what we’re doing here at my mortgage bank and how we can help investors, new investors, take advantage of today’s marketplace.

    Kristen (02:35)
    Amazing and I know you have a lot of optimism for the market and I’m excited to get into that First let’s start at the beginning. How did you get into this line of work? What’s your background?

    Adrienne Galvan (02:45)
    Well, I’m a San Diego native, San Diego, California native, and I actually got thrown into the business in 1991. I started off as a receptionist. I started off in the industry when I had no clue what it was all about. However, you know, was shocked by the 23 to 33 % interest rates back in 1991. So.

    I started back way back when. It just so happened I won $1,000 on the radio station while I was at work, quit my job. I told my boss I’m out of here. Of course, took off and ended up coming back into the industry in 1998. And since 1998, I started off at retail.

    Kristen (03:23)
    Cool.

    Cool.

    Adrienne Galvan (03:40)
    ⁓ I worked for a large company that really, that was the whole just frontier of my platform of training and my boot camp in the business. did a fantastic job of getting us. ⁓

    into the industry of lending and from there I never looked back and I’ve been in the industry for 25 years. So I’ve been in the mortgage banking space for 10 years working with investors, new investors and

    Yeah, it’s, you know, this is what I do. I’m very good at it. I’m very good at structuring loans. We want to get your loans to the finish line. And 95 % of the time, we want to close your deal. So for me, with my expertise, I can help you on the front end to make sure that 95 % of the time, we’re going to get a win-win to the finish line with our underwriters. So.

    Kristen (04:40)
    Yeah, that’s amazing. And how do you work with people to ensure that? What are kind of the steps you go through in the beginning on the front end?

    Adrienne Galvan (04:46)
    It’s a lot of questions, a lot of questions that need to be answered in order to accomplish our goal for your client, for yourself, for your company.

    so it’s a lot of pre-underwriting on the front end. I’m very well versed in our guidelines. I know what works when you’re filling out that application the right way.

    application, that 10-03, that tells the entire story about what you’re trying to accomplish for yourself or for your client. It’s so important that we make sure that that’s filled out properly and that your credit is reviewed on the front end. So we’re going to want to see your credit, your most recent credit, and we’re going to want to see a complete loan application.

    ⁓ Sometimes, because this is collateral based, we want to see the property beforehand before we get it into the underwriter’s hands. it’s a lot of front end work, but it’s so worth it because then you’re going to smoothly close your transaction. And everybody wins, everybody’s happy, and you want to do it again because you’ll see it’s a simple process.

    Kristen (06:54)
    Yeah, that sounds very simple and there’s no tax returns or anything involved.

    Adrienne Galvan (06:59)
    Right,

    so we’ve got fantastic programs for experienced investors up to 80 to 85 percent and we don’t require any tax returns. So that’s what’s really great about this product. We’re also offering new investors, if you’re a new investor out there and you own a primary home for the last 12 months, more than happy to help you and help you finance 75 percent financing up to a million dollars.

    go up to actually we’ll go up to eight units with our products here but you know one to four is you’re going to get better terms better pricing ⁓ today if you want to leverage some really good pricing it’s now is the time now is the time the you know we also offer ⁓ cash out on your investment properties so we will do up to ten properties for you if you want to pull cash

    out of all those and buy some additional property or use it for any business purpose, we’re happy to help you finance those as well. So, yeah.

    Kristen (08:10)
    Yeah, amazing.

    And working with those first time investors, what are some mistakes that you see that maybe you can give some tips on?

    Adrienne Galvan (08:21)
    Well, you want to make sure you do have some reserves in the bank because we are going to require up to three to 12 months reserves for a new investor. So depending upon their credit score. So you just want to make sure that you do have some funds in the bank. You’re also going to be needing some cash there for closing cost.

    Kristen (08:35)
    Yeah.

    Adrienne Galvan (08:47)
    So just remember, you’re going to need your cash there for title fees, escrow fees, recording. All the fees.

    you know, that escrow requires to fund your loan. There are additional fees because it takes about 15 hands-on people in order to close your loan. I mean, you’ve got 15 people touching that file. And so there’s, you’ve got title, escrow, your attorneys, and you know, perhaps your lender, you know, that’s, so you gotta be prepared for that.

    Kristen (09:27)
    Yeah, absolutely. And what are some of the requirements? What are the credit scores that you look for?

    Adrienne Galvan (09:35)
    So we’re looking for a 620 and up is what we’re looking for Which is pretty fair, I mean it’s very close to like your FHA FICO requirements, right? So yeah, that’s all we’re looking for Is a 620 FICO Of course if you own any other real estate any investment properties We’re gonna require two months of reserves

    ⁓ for each and every property that you own on top of the three to six months for the investment property. And that’s just to eliminate risk. If anything were to happen where your tenant perhaps, you know, leaves the property, we know that you have enough reserves in the bank to cover those payments until you get a new tenant in there. Yeah.

    Kristen (10:47)
    Great.

    Absolutely. what…

    No, keep going, keep going, sorry.

    Adrienne Galvan (11:07)
    and one other thing that we will, I wanted to include is not only are we gonna do your just typical long-term ⁓ renter, we’re gonna allow your Airbnbs as well. So.

    Airbnb properties, VRBO, we’re happy to help you with those short-term rentals and get them financed for purchasing, refine, or refi cash out. Not a problem at all. And what’s cool about the product is we’re just gonna ask for an appraisal and the real estate appraiser to show market rents on the appraisal that are gonna help you qualify for the financing.

    That’s going to get your best possible pricing now if the market rents on the appraisal do not

    cover, the mortgage payment, tax, insurance, HOA if you have one, then we’re gonna give you a little bit of a less term when it comes to the financing, the percentage of the purchase price or the loan amount. We’re gonna give you a little bit less and a little bit higher rate, but that opportunity is there if the market rents don’t qualify. So we’ve got five different ways to qualify you.

    Kristen (12:24)
    Oh yeah, that’s incredible. And what kind of sets you apart from private or hard money lenders?

    Adrienne Galvan (12:31)
    And what sets us apart is the terms. Your private and hard money lenders, not only are they in the, ⁓ they’re not even next to prime, they’re in the 10, 11, 12 percentile of interest rates. And they’re gonna give you a shorter term. They’re gonna give you one to two years to pay them back. Most likely it’s gonna cost you, it could be up to five, six points on the front end. ⁓

    to pay the private hard money investor. And with us, mean, technically, we’re more than happy to give you a little bit of a credit back towards closing cost with our products. We are…

    Longer terms will go up to 40 years, a 40 year term. So we’re going to be that more conservative space for you when it comes to leveraging money for your investment property. We are going to be more conservative all the way around with your interest rates being next to prime. mean, our floor rates are in the sixes. ⁓

    And yeah, I mean, it’s truly the direction you want to tackle before you even consider your hard money or private money.

    Kristen (13:45)
    Yeah, absolutely. mean, yeah, that’s definitely the terms really do make it very appealing and, you know, the way you guys work with people on the run end. And it’s also my understanding that you can help people get these loans fairly quickly, right?

    Adrienne Galvan (13:52)
    Yeah.

    Absolutely, we just closed a purchase in 10 days. As long as you’re willing to, you or your assistant willing to put in the work on the front end.

    These loans are very minimal documentation and we can close your deal in 10 days. So if you’re in a hurry and there was for some reason the investment property purchase or refi fell out of another lender and you’re on a time crunch, give us a call. Let us know. We’ll do our very best to get that closed quickly for

    The company I worked for at this time, LensFinancial.com,

    24 hours in underwriting. So we want to help you get that closed quickly. We understand the sense of urgency.

    Kristen (14:50)
    Yeah, and you work with a lot of different markets, correct? Or is it just California?

    Adrienne Galvan (14:56)
    yeah, we are ⁓ nationwide.

    there’s very few states that we don’t cover. ⁓ I can give you a map or anyone that reaches out to me more than happy to give you a map so you know where your direct marketing can go and what states you can tackle that you feel comfortable in. And so therefore, yeah, happy to help you with that.

    Kristen (16:05)
    Incredible. you know, just from a macro perspective, I would love for you to talk about where we’re at in terms of the market and what you’re seeing and what the opportunity is. Cause I know there’s a lot of people who are a little confused and maybe a little reluctant to enter the market.

    Adrienne Galvan (16:22)
    Right now, because interest rates have dropped in this fourth quarter twice now. so it is going to and has stimulated the market, which is you’re getting more investors purchasing at this time. So you know.

    You definitely want to take advantage of where the interest rates are today, which like I said, if you’ve got a FICO in the high 600s, you’re gonna be in the six or 7 % rates today. So right now is a good time to, if you wanna be a new investor or you’re a current investor, is to leverage the interest rates that we have today and the equity, for example.

    again on cash out refis leverage that equity today to you know get yourself some more property and build that portfolio. Yeah next year we were projecting that you know I want to say as far as equity goes it could level out I don’t think we’re gonna see a 10 to 15 percent increase in

    market prices, we may see a little bit of a decrease. So if you do own investment properties now and you need to get your interest rates down on those properties to free up your cash flow, do it in the next six months. Do it before spring. Don’t hold out. If you want to pull cash out today or within the next six months, that’s your best bet to leverage your financing and your needs for cash flow.

    Kristen (18:02)
    Yeah.

    Absolutely, and I love hearing that the market has, you know, there’s optimistic feelings about the market, of course. And there’s never going to be a perfect market. whether it’s a better, quote unquote, better market or less competition, it’s never going to be perfect.

    Adrienne Galvan (18:27)
    Right.

    No, it’s gonna, there’s always gonna be money out there to lend in order to get what it is you’re looking for. So, absolutely, I agree.

    Kristen (18:47)
    Yeah, and I know that you do a lot of DSCR loans. I would love for you to talk a little bit more about that and kind of, ⁓ you know, just how that helps people.

    Adrienne Galvan (18:56)
    Yeah, debt service coverage loans, ⁓ they’re called DSER loans. Some people are very familiar in the investor world and some are not. So I’ll just educate you on that. Our debt service coverage loans, basically, you’re not going to need any tax returns. We’re not going to need any proof of your personal or your entity’s income. We’re going to use the market rents on the appraisal.

    in order to qualify you.

    and in order to price out your loan and provide you with some interest rates, some short-term, long-term opportunities, so your terms are going to be greater, but you’re going to basically, the formula that we use is we’re going to use whatever the highest market rent is on your appraisal, and we’re going to divide that by the PITI, which is your mortgage tax,

    insurance

    HOA if there is one and that is the formula that we use if you hit 100 % and over of your PITI You’re going to get better pricing and that’s how we qualify you It’s also based on your FICO score. We do offer You know if you have a lease agreement in place We can use the lease agreement if it’s a greater than the market rents on the appraisal to qualify in order to fund

    your loan and that’s as simple as it is. ⁓ If you have an Airbnb rent roll we’re going to look at the prior last 12 to 24 months rent roll to qualify if that gets you into that over 100 percentile of your PITI HOA.

    So we do, so that’s basically how we qualify you. We would need title and escrow appraisal purchase contract if you’re buying. And of course we are gonna need you to, ⁓ you know, update your mortgage insurance, that applies. And that’s literally all it takes in order to get these long-term ⁓ investment loans.

    Kristen (21:15)
    Yeah, that’s amazing. Yeah, there’s a lot of options for investors out there. Well, I think you’ve given really great information on what people, what’s even available to people. think that’s a, it’s hard to kind of pull that kind of information. And obviously your perspective on the market to kind of wrap this up, what would be something that you really wish more investors knew? Like maybe you see something over and over that you can help people out with.

    Adrienne Galvan (21:28)
    So I’m fine.

    I would like investors to again understand that there is a ton of money out there that’s not hard money, private money. There is a ton of money out there to lend you to help you build your portfolio fast, easy, simple. ⁓

    And we’re also here to help to overcome any ideas of obstacles that you think you have and educate you on everything when it comes to investing your money into your portfolio. So we’re here to educate as well.

    Kristen (22:27)
    Yeah.

    Adrienne Galvan (22:28)
    here to

    answer any questions to help you drive your business or make you, know, supersede your goals as an investor. So we’re here to educate as well. Educate, train, and show you the way to finding the money. We’ve got the money. Yeah, so.

    Kristen (22:45)
    Yeah.

    Amazing. Well, tell everyone where to find you and how to work with you.

    Adrienne Galvan (22:51)
    Oh sure, I can be reached, you can find me on LinkedIn or I can be reached at lendzfinancial.com. I’m a wholesale banker there and my email is adrienne, A-D-R-I-E-N-N-E, Galvan, G-A-L-V-A-N, at lendzfinancial.com. My direct line is 619-693-2252. I welcome you all, I welcome questions.

    comments, if you would like a training, more than happy to carve out some time for that. And I welcome new investors more than happy to help you start building your portfolio. It’s an exciting time to do it.

    Kristen (23:36)
    Amazing. Well, thank you so much for being here, Adrienne.

    Adrienne Galvan (23:39)
    Thank

    you so much, Kristen. Thanks for having me. So grateful.

    Kristen (23:43)
    And

    yeah, and everyone, hope that you learned a lot on this episode, got some inspiration maybe how to change what you’re already doing or get into the game. And please reach out to Adrienne. She has a lot of knowledge to share and we will see you back next time. Thank you so much.

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