Our rates are low, our application is quick and easy! We can get you clear to close in as little as 10 days!
NMLS ID # NMLS # 228246
William Rapp, based in Houston, TX, US, is currently a Capital Advisor at Medallion Funds, bringing experience from previous roles at eXp Commercial, NEXA Mortgage, Viking Enterprise LLC and Sun Realty - Houston. William Rapp holds a 1997 - 2001 BBA in Finance @ Texas A&M University. With a robust skill set that includes REO, Sellers, SFR, FHA financing, Reverse Mortgages and more, William Rapp contributes valuable insights to the industry.
Great experience purchasing our first home! Bill was easy to reach and always able to answer any questions or concerns.
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š§® Cost Segregation + DSCR Loans: Unlock Tax Savings & Cash Flow š
š¼ DSCR Loans + Cost Segregation = Real Estate Investorās Hidden Advantage š°
For real estate investors, maximizing both tax savings and cash flow is the ultimate strategy. Two powerful toolsāCost Segregation Studies and DSCR (Debt Service Coverage Ratio) Loansācan work hand-in-hand to give you a competitive edge. Letās break down how they complement each other.
Cost segregation is a tax strategy that allows real estate investors to accelerate depreciation on certain parts of a propertyālike flooring, lighting, HVAC, and other non-structural components. Instead of waiting 27.5 or 39 years to depreciate an asset, investors can write off big portions within 5, 7, or 15 years.
ā Benefits:
Ā· Immediate tax deductions
Ā· Improved after-tax cash flow
Ā· Potential reinvestment into new deals
A DSCR loan (Debt Service Coverage Ratio loan) is a type of mortgage commonly used for investment properties. Instead of relying on your personal income, lenders approve you based on the propertyās net operating income (NOI) relative to the debt payment.
Ā· Formula: DSCR = NOI Ć· Debt Service
Ā· Example: A DSCR of 1.25 means the property generates 25% more income than needed to cover the loan.
Hereās where the magic happens:
1. Lower Taxes = Higher Cash Flow
A cost segregation study reduces your taxable income, freeing up more cash flow.
2. Higher Cash Flow = Stronger DSCR
Lenders look for healthy DSCR ratios. With more after-tax cash flow, your property is more likely to qualifyāand potentially at better terms.
3. Expand Your Portfolio Faster
By saving on taxes and improving loan qualification, you can reinvest capital into additional properties, growing your portfolio at a faster pace.
Ā· Investor purchases a $1.5M multifamily property.
Ā· A cost segregation study accelerates $300K in depreciation within year one.
Ā· That deduction significantly lowers taxable income, improving free cash flow.
Ā· With stronger financials, the investor refinances with a DSCR loan, unlocking more leverage for the next deal.
If youāre serious about scaling your real estate portfolio, pairing cost segregation strategies with DSCR financing can give you a powerful one-two punch. Not only do you save thousands in taxes, but you also strengthen your ability to finance more properties without relying on personal income documentation.
š Ready to explore how cost segregation and DSCR loans can work for your investments? Contact Medallion Funds today to structure a strategy that maximizes both tax benefits and financing power.
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Ā© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
Buying your first home can be both exciting and nerve-wracking at the same time. With so many things to consider and....
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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy
Copyright ©2021 | Mortgage Viking Team
Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright Ā© 2021 | Medallion Funds
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014
Corporate NMLS NMLS # 1825831 | Company Website: https://medallionfunds.com/bill-rapp/
Copyright ©2021 | Mortgage Viking Team Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014 https://medallionfunds.com/bill-rapp/
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