Video Transcript:
I see many investors focus only on a property's income. They are often surprised by the real test: the lender's strict liquid cash reserve requirement. My name is David Ghazaryan. I structure these deals daily, ensuring every detail is correct. A common mistake is miscalculating PITIA—principal, interest, taxes, and association dues. Lenders won't count your full investment account balance. For stocks or mutual funds, they typically apply a haircut, counting only about seventy percent of the value. This knowledge is your advantage. Knowing your hundred thousand dollar brokerage account only counts as seventy thousand means you can prepare the correct amount without last-minute surprises. The challenge grows with your portfolio. As you acquire more properties, lenders increase the reserve requirements, not just for the new property, but for all others. I cover more common mistakes, like moving money around before closing, in my full article. You can find that article and other resources with the links below.
Read Blog Here: https://www.iqratemortgages.com/blog/dscr-loan-reserve-rules-in-las-vegas-nevada-explained
