Passive Real Estate Investing The Power of a DSCR Loan and How You Can Finance Rentals in an LLC
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Sep 16, 2025 Aaron Chapman, a seasoned lender with over 27 years of experience, shares invaluable insights into real estate financing, focusing on DSCR loans. He discusses how these loans can be the 'holy grail' for self-employed investors looking to finance properties through LLCs. Aaron emphasizes the importance of relationships over interest rates and warns against poor loan decisions that can lead to financial turmoil. He also highlights strategies for scaling portfolios and discusses the critical role of teamwork and transparency in successful real estate investing.
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Treat Investing Like A Business
- Real estate investors are business owners and need tailored lending guidance, not generic borrower advice.
- Aaron stresses relationships and experience over small rate differences when building a portfolio.
Cheap Loans Caused Devastating Stress
- Aaron described a client who chased the cheapest loans and ended up $1,100 negative monthly and spent $25,000 to fix it.
- The stress from that structure led the investor to have a stroke the week he signed fixes.
Seller Pulled Out To Protect Buyer
- Aaron recounted a seller refusing to sign at closing because they found out a luxury apartment was planned nearby.
- The seller then kept the house for his own portfolio to spare the buyer the future problem.