MAKE MONEY WITH LOANS, WITH NO INCOME! Why DEBT Is GOOD! DSCR Loans

Now, here's the best part. All you have to do is punch in some numbers, and you'll know if you have a deal or not. Debt, debt, debt. I love debt. Debt is the best thing ever invented. I want to get into as much debt as I possibly can. Sounds crazy, right? These loans that I'm going to talk about in this video require no personal income at all, no tax return, no bank statements. They're really crazy. That's why the rich use them. They don't worry about all the stuff that everybody else is worried about. In fact, one of the worst things I ever did was teach my assistant about debt and how to use it. Now, she's a multimillionaire and owns tons of property all across the country. And yes, she watched me borrow a ton of money and learn how to do all this stuff. While everyone else is trying to get out of debt, Ramsey is telling you, you don't want debt. Governments, billionaires, and multimillionaires, and even now my assistant, after 10 years of working with me, are trying to get into as much debt as possible, like me. For example, Grant Cardone, he bought $4 billion in real estate in less than a decade using the method I use myself and many people do that I've taught. And I'm going to show you in this video how exactly you can do the same so that hopefully you'll get similar results. It's super easy and anyone can do it. And I mean anyone. In this video, I'm going to share with you the secret that rich people, banks, and governments would never tell you. But they do want you to know this because if you're in the know, they want to give you money because they make money off of giving you money. You'll learn how to turn that debt into income with no limit on how much you can borrow. But more important, and the key is how much you can make. See, the thing is I could borrow a billion or 10 billion or $50 billion. I do it in a heartbeat because I can make enough to pay the interest and make money. Now, take my boy Elon Musk. The guy's got $13 billion in debt and his net worth is higher than Jeff Bezos. I mean, it jumps back like seriously, why would he have $13 billion in debt? And this is even since he's bought Twitter. Yes, I still occasionally call it Twitter. I know we're supposed to be calling it X. So why would you want to be borrowing money? Well, why would Mark Zuckerberg be taking $1 a year in income or same like Bezos? Why would they do that? There are four basic principles. All the big boys follow in order to take on debt in different ways for financial benefit reason. Essentially, banks will not lend to you unless you are making money on your debt. I know that sounds crazy, making money on borrowing money, or that you use collateral or something to back it like stocks. Rich people are making money off of their debt, acquiring assets with that debt, and reducing or eliminating their taxes altogether. Literally, they'll take on debt because you can write off debt, and then you can depreciate assets and write off all that money. It's absolutely crazy. Like buying a car that's over 6000 pounds and being able to write it all off on taxes is pretty crazy. I'm going to get into all that more by the end of the video and what it means and also show you how to leverage DSCR loans and turn this debt into income. And don't be confused by DSCR, the acronym we just use in the industry. It just means you'll be making more money than it costs you to borrow the money. And I'll show you how to do that and why to do that. I'm going to go in depth about what it means later on in this video. But this is one of those things holding you back and others back from your dreams right now. In case you stumbled onto this video and you have no idea who I am. My name is Andrew Cartwright. I'm here to help you get money, leverage it and invest it. I can relate to where you are. I have been broke and homeless to multimillionaire four different times. I've had four come up stories, which I'll be putting out in other videos shortly about those four different times because you guys been asking for it. But yeah, I've done it four times. And I finally locked in that success with starting 32 companies in 17 industries, buying 17 and exiting five times. Now I'm in a pretty good place. I'm buying companies with you guys in Epic 99, where you own 81%. There's a link down in the description as well as if you need a loan for your business, make sure you check out the link down below. This video is about leveraging and exploiting and extracting as much money from the banks as possible through the use of DSCR loans and creating debt that feeds you debt that doesn't eat you. And also I want to make a special thanks to Pinex for giving us a couple of bots that we've been using to trade, which is really cool. Pinex is a crypto exchange in the US that offers AI trading bots that'll just trade for you. You can also, there's a link in the description, 30 bucks you can get to use on the platform, which is pretty cool. So check out Pinex and let those bots just work for you. It's pretty crazy and grab those free stocks down below. Now let's get into DSCRs. What is that? Debt service coverage ratio. Debt service coverage ratio. It's the measurement of a property's current rental income compared to its debt obligation. A DSCR is about a one to one is neutral, right? Positive debt service coverage ratio is where you make more than, let's say it's a hundred dollars. If you make a hundred and $10, that's positive, positive debt service coverage ratio. That's a good loan. One that doesn't make enough money to pay the loan is negative cashflow. Nobody's lending on that, just to let you know. But still stick around to the end because I'm going to show you the math to get to the number in a spreadsheet and you'll be able to know something that works for you and one that doesn't work in just a minute. A DSCR loan allows a borrower to qualify for financing based on the project, the actual property by itself. Why they don't need your income or any of that stuff. The rental income of the property rather than your personal income. How much is the property going to make? DSCR loans are designed for real estate investors and can only be used to purchase income generating properties. Now, leveraging a DSCR loan can be an amazing for real estate investors to expand and explode your rental property portfolio. Somebody who exploded his is Grant Cardone. Here are some of the key ways that you can leverage DSCR loans. Since DSCR loans are qualified based on your rental income of the property rather than your personal income, which could be negative, you can use them to finance a property and purchase property and additional rental property. So as many as you can possibly buy, all without being limited by your personal income or your existing debt obligations, which is how most properties are financed, like how much money do you have left over after you pay all your debts? Well, in this one, they don't care about you personally. This allows for faster, unlimited portfolio growth, which is what you want, how the rich get rich. Renovating and increasing rental income is another way that you can use to leverage DSCRs. This one is pretty simple. They give you the proceeds that you can use to renovate an existing rental unit, potentially increasing the rental rate and the overall property value. Good for everybody. The higher the rental income can get enables investors to qualify for larger future DSCR loans to acquire the property. This is how you grow. And you can also leverage through an LLC, which you're going to set up a company for a DSCR loan, and you can obtain a LLC and other business entities to rather than loaning to yourself as a borrower and individual. This provides the liability protection that you'd want and allows investors to further segregate their rental business from your personal finances and risk. You don't know what's going to happen on that property. Since personal income is not considered for a DSCR loan approval, investors can continue qualifying for other types of personal loans and mortgages because it doesn't even show up on your personal credit report, which is crazy, right? And it's not solely based on your individual income. They don't care. You can also refinance existing rental properties with DSCR loans and take cash out from your equity, which is also incredible. This cash can then be used as a down payment to purchase other income producing property, which is super cool because you grow your portfolio. The rental income from all the properties can qualify that you're borrowing for even more DSCR loan. Now, how exactly does Elon Musk tie into this whole thing? Anyway, this process of borrowing and refinancing is how really rich people are able to become even richer. They may not do this through DSCRs, but through other types of borrowing. People like Elon Musk are able to leverage their stock holdings to borrow large sums of money with minimal tax implications, allowing them to access significant liquidity without selling any shares. And since they're loans, it's not income. Here's how it works. Musk and other billionaires pledge their company stocks as collateral to secure personal loans from banks and other lenders. For example, Musk has pledged 88 million Tesla shares worth $63 billion to back personal loans in 2021. These loans are treated as debt obligations, not taxable income. Crazy, right? So Musk can borrow billions without paying income tax on the proceeds that he pulls from those loans. Unlike if he sold the stock outright, he'd owe the capital gains on it. So why not borrow the money? His capital gains might be 40%. And by borrowing the money, he pays no capital gains and actually gets the right off the interest that he's paying, which is a lot less than 40%. I'm sure it's in the single digits. The loans typically have a lower interest rate, which is incredible. Just a few percent since they're secured with the valuable stock collateral, which is pretty liquid. In summarizing all this stuff, by leveraging rental income instead of personal income, like Elon and Zuck and all these guys do, in real estate, you personally can use DSCR loans and give real estate investing your next thing and have the flexibility to be able to do that. This flexibility allows you to rapidly grow your portfolio, pull out equity, improve properties, get money that you may need without paying taxes on it because it's a loan, and you can maintain the separation between your investments and your personal finance. Now, here's the best part. I love this part because this is so much fun. This is fifth grade math, but you don't have to do it. All you have to do is punch in some numbers and you'll know if you have a deal or not, whether you should actually buy the property or not. And this is not financial advice. First of all, Capital Velocity, full disclosure, is my company. I'm the CEO of it, but you can use anyone else you want to use for your lender to be able to do your investment property. We do single property rentals. We also do five units plus. We do small portfolios. Let's say, for example, you have 10 properties or less with $2 million, or let's say you have a large portfolio with 10 properties plus, and you're well over $2 million. I do all those. So if you want to refinance a portfolio, come on down. We'll be happy to help you. And a lot of people can also do the same. So let's put in here. This is all going to figure it out for you. Also, I'll put a link in the description. You can go directly to this calculator. It's completely free so that you can use it and you can acquire your first property or maybe refinance your property or whatever you want to do. So first off, I'm going to say the property as is value is $300,000. Okay, so and let's say, for example, this is the requested LTV. That's your loan to value. So the total value is $300,000. How much are you requesting? I'm going to say 80% here. Being conservative, you can be 90% depending on your level of expertise. Let's say it's a 7% interest note on your rental. The other thing we allow is you can have a interest-only period where you pay less. You don't pay any principal. And we go ahead and add that to the back of the loan. But that can help you with generating some operating capital. It's just another way you can go. It's an option you can use. There are lots of things that we can negotiate and deal. So the next thing is what's your in-place rent. Let's say I'm getting $3,500 for rent. Let's say market rent is $4,000 in the neighborhood. I'm giving the person a deal and I got taxes and HOA fees. So taxes, I'm going to go here. I'm going to say it's like, I don't know, $4,000 a year for taxes. And then I'll do insurance. Maybe I'm paying, let's just make it $2,000. $2,000 in insurance, no HOA fee. Now, the big number we want to find out here is what is this number? So the DSCR here, this is what number you're looking at. This is all that matters. That has to be 1.1 and higher. Okay? So this means that if you were making $167, $67 of that goes in your pocket and the dollar would go to debt service and expenses. So all your operating expenses are here and then your debt as well. So here's your annual income. Then you have your operating expenses, your debt service, which is the cost of the loan for a total of 19. And then you're ending up with a 1.67 debt coverage ratio. So that means that you can cover your debt and expenses. That's the one. And then the 67 is your profit. Now, let's say for example, this was a really thin deal and your rent was, let's say $3,000 and market rents were 3,500 because this is income based. Now you're at 143. Let's say we're going to take this up to a 90% LTV. So you only have to put $30,000 down. You're still at a 1.31 debt coverage ratio. This is a deal that works. Let's say it was 2,500. Let's see when the deal breaks. Calculate it. Ah, the deal broke at $2,500. So we need to at least get more than $2,500 because the debt ratio is 1.09. That's a deal that won't fly. So that one won't work. So you might have to lower your LTV to 85%. Now we're back up over that debt coverage ratio. And again, that's the more, the higher this is, the more money you make. I look for as much, I don't like skinny deals. I want to make as much money as possible, you know, within reason. So that's how you use this calculator. It's real simple. Link is in the description. Check it out. Super easy. Does all the math in the background for you. Really simple and easy. Also, let's say, for example, the house needed repairs and you needed to fix it up before you turned it into a portfolio loan for your rental portfolio. Well, in order to do that, I have another calculator that you can use. First, you need to do a fix and flip loan, right? That's a bridge loan to this takeout loan. So that's right here. I have this. I'll be going over this on my second channel, Reluctant Billionaire. I'll go through this so that you can see it as well as provide you with a link so that you can also do it. So if you want to fix and flip the property to yourself, you can fix it. You can do all the repairs. We'll finance all the repair costs. We'll even finance the points and the interest into the loan so that you can repair it so that you can then sell it to yourself in your own portfolio and keep that property for maybe your life and maybe your kid's life. So have fun investing in real estate. I hope this helps. Remember, none of this is associated with your personal income. We don't care what your personal income is. It does not matter. It's all based on the property. You can buy as many of these as you want. You can flip as many houses in your own portfolio as you want and you can grow your portfolio. Maybe you'll grow the size of Grant Cardone, which has like $4 billion in real estate and I think 11,000 different units. So imagine that. You could do that. He used the same exact thing, DSCRs that cover the debt. He puts a down payment and this is how it works, folks. It's super easy, simple math. You can do this, which I talk about on my channel all the time. If you like the video so far, please hit the like and the subscribe button. I'd love for you to stick around for more tips on your finances and how to get wealthy, because I would love you to succeed. Thanks so much. My name is Andrew Cartwright. Love you.