Turn Vacant Units into New Loans: How PMs Earn Fees by Introducing DSCR Refinances
Your rent roll already tells the story—now let it pay you twice.
1 | Why Property Managers Control the Tipping Point
| Your Day-to-Day Data | What It Signals to a Lender |
| Weekly occupancy & vacancy reports | “Stabilized” when ≥ 90 % leased—ready for cheaper permanent debt |
| Actual rent collections | Proof that NOI is real, not broker pro-forma |
| Maintenance logs & Cap-Ex tracking | Lender sees deferred-maintenance risk is low |
| Renewals vs. turnover | Predictable cash flow → stronger DSCR |
Translation: You know exactly when a building graduates from bridge or construction financing to a 30-year DSCR loan—often before the owner’s bookkeeper figures it out.
2 | DSCR Loans in 90 Seconds (What You Need to Pitch)
| Feature | Quick Explanation to an Owner |
| Debt-Service-Coverage Ratio (DSCR) | Net Operating Income ÷ Annual Debt Service. Target ≥ 1.15. |
| LTV | Up to 80 % on 1–4 units, 75 % on 5–8 units. |
| Underwriting | Based on property cash flow, not personal tax returns. |
| Rate Options | 30-yr fixed, 5/7-yr ARM, interest-only available. |
| Close Speed | 21 days average when PM provides rent roll + T-12. |
3 | How Referral Fees Work for PMs
| Model | Effort | Payout* |
| Simple Referral | Email rent roll + contact info | 0.50 % of loan amount |
| Co-Broker (optional) | Collect docs, stay on emails | 1.0 – 1.5 % of loan + bragging rights |
*Commercial loans → no RESPA restriction; fees paid by LoanFunders.com at closing.
A $720 K DSCR refinance at 0.50 % = $3,600—often more than one month’s management fee.
4 | Vacancy → Refi Timeline You Can Control
| Phase | Your PM Trigger | Lender Action |
| Lease-Up | Vacant units drop below 10 % | Pre-qual DSCR with trailing three-month NOI |
| Stabilize | 3 consecutive months ≥ 90 % occupancy | Order appraisal; lock rate |
| Refi Prep | Provide T-12, rent roll, insurance, budget | Clear conditions; schedule closing |
| Post-Close | Cash-out funds cap-ex reserves | Management contract renews (owner loves you) |
5 | Case Study—8-Unit Value-Add in Cleveland
| Metric | Bridge Loan | DSCR Refi |
| Rate | 10.5 % I/O | 7.35 % 30-yr fixed |
| Debt Service | $6,300/mo | $4,700/mo |
| DSCR | 1.11 (tight) | 1.49 |
| Cash-Out | — | $92 K to owner |
| PM Referral Fee | — | $4,140 (0.5 %) |
| Result | Owner funds next turn-key; PM wins second building contract |
6 | Objection-Handling Cheatsheet
| Owner Says… | You Reply… |
| “Rates might drop next year.” | “You’re spending $1,600 extra every month right now. If rates fall later, we can refi again—no prepay after Year 3.” |
| “My CPA needs docs.” | “DSCR needs only the rent roll, T-12, and insurance binder—all in our files. No tax returns.” |
| “I hate paperwork.” | “LoanFunders.com pulls most data from the management portal. You sign, they fund.” |
7 | 5-Day Action Plan for Property Managers
| Day | Task |
| 1 | Run your portfolio report—flag properties ≥ 90 % occupancy for 3 months. |
| 2 | Email owners: “Your building now qualifies for long-term DSCR at 80 % LTV.” |
| 3 | Collect rent roll & T-12; forward to LoanFunders.com (cc owner). |
| 4 | Receive white-label term sheet (your logo if desired). |
| 5 | Owner signs; you track closing and collect referral fee. |
Repeat quarterly. One spreadsheet = four new income checks a year.
8 | Value Stack for PMs
| Benefit | Detail |
| Extra Revenue | $3–10 K per refi without hiring staff. |
| Client Retention | Lower debt service → budget for upgrades → renews your contract. |
| Competitive Edge | Pitch “full-cycle advisory” vs. basic rent collection. |
| Pipeline Growth | Owners refer other landlords when you free up equity for new deals. |
Ready to Turn Vacancies into Referral Checks?
Send us your rent roll & trailing-12 today—LoanFunders.com will size the loan, brand the term sheet with your logo, and get you paid when we fund.
Manage the units. Monetize the stable ones.