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.