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- Same Client, Second Payday: Refi Playbooks After a Bridge-to-DSCR Flip
Same Client, Second Payday: Refi Playbooks After a Bridge-to-DSCR Flip
George Tsividakis
September 08, 2025
A broker’s field manual to lock the take-out before demo starts—so you earn two checks on one client.
1) Why This Works (and Why Most Brokers Miss It)
You already won the bridge: fast close, rehab funded, client’s thrilled. But unless you pre-sell the DSCR exit, many investors drift to a bank or a buddy when it’s time to refinance. The fix is simple: embed the refi plan in the original pitch, then manage the timeline like another phase of construction.
Two closings, one marketing cost, stickier client.
2) The Three Core Playbooks
Playbook | Best Fit | Key Trigger | Docs You Need |
|---|---|---|---|
Rate-Term “Speed Flip” | Cosmetic < 90 days | 90% rehab complete; temp CO if needed | Appraisal (ARV basis), insurance, updated title |
Cash-Out BRRRR | Long-term hold, light/med rehab | 3 months rent history or signed leases | Rent roll, T-12, lease ledger, DSCR worksheet |
Portfolio “Two-Step” | 2–8 units or multiple doors | Final unit leased; DSCR ≥ 1.15 | Unit-by-unit DSCR, consolidated schedule of REO |
Targets: DSCR ≥ 1.15 for best pricing, 75–80% LTV post-rehab value (1–4 U up to 80%; 2–8 U typically 75%).
3) Underwriting Alignment—Bridge Day 1 → DSCR Day N
Bake these into the bridge term sheet so the DSCR is painless later:
FICO Floors: 660 min (700+ helps pricing/LTV).
Seasoning: Rate-term = 0–3 months; cash-out often 6 months (varies—ask us).
Appraisal Basis: Order an ARV appraisal that your DSCR lender will accept; saves a second trip.
Insurance: Landlord policy ready at TCO; builder’s risk lapses same day.
Entity: Title and vesting consistent across both loans (avoid last-minute entity changes).
Day | What You Do | Why It Matters |
|---|---|---|
–60 | Prequal DSCR at assumed rate; run ±25 bp sensitivity | Confirms exit even if rates wiggle |
–45 | Order DSCR appraisal; line up insurance quote | Locks collateral & binder timing |
–30 | Collect leases; finalize rent roll | Underwriter focuses on DSCR, not stories |
–15 | Submit full DSCR file; request float-down option | Term sheet in 24 hrs |
–5 | Clear final permit items; get temp CO if allowed | Removes last conditions |
0 | Fund DSCR; pay off bridge | 🎉 Your second commission |
5) Napkin DSCR Math (Use in Calls & Emails)
DSCR = NOI ÷ Annual Debt Service
Example: $3,200 monthly gross rent – $900 (tax+ins+HOA+PM) = $2,300 NOI/mo → $27,600/yr.
If DSCR target is 1.15, allowable annual debt = $27,600 ÷ 1.15 = $24,000 → $2,000/mo P&I cap.
Work backward to loan size at today’s rates; if tight, adjust LTV or pursue I/O option.
6) Objection Scripts
“Rates might drop; I’ll wait.”
“Every month on bridge costs you $X more than DSCR saves. We can refi now and add a soft prepay (3/2/1). If rates fall, we refi again.”
“Appraisals are slow.”
“We ordered the DSCR-eligible appraisal 45 days ago. You’re not starting from zero—we planned the exit.”
“Paperwork fatigue.”
“You’ve already sent 80% for the bridge. DSCR is property-based: rent roll, insurance, and the new appraisal. We’ll package it.”
7) Broker Revenue—What to Quote (Illustrative)
Loan | Amount | Comp |
|---|---|---|
Bridge Origination | $420,000 | 2.0 pts = $8,400 |
DSCR Take-Out | $504,000 (80% LTV on ARV) | 1.5 pts = $7,560 |
Total | — | $15,960 on one client |
8) Email Templates You Can Steal
A) Set the Two-Loan Expectation (Use with Bridge LOI)
Subject: Your Rehab Plan and Refi Timeline (One Email)
Congrats—term sheet attached for the purchase & rehab. As discussed, we’ll roll you into a 30-yr DSCR when the work is 90% done. I’ve already penciled your DSCR at 1.23 with conservative rents. We’ll start that file 30 days before punch list. Two steps, one plan—no surprises.
B) 30-Day Refi Nudge
Subject: Appraisal Ordered—Let’s Lock Your DSCR Exit
We ordered the DSCR appraisal today and your projected DSCR stays above 1.20 even if rates move 25 bps. Send the updated insurance quote and lease ledger; I’ll have a take-out term sheet for signature tomorrow.
9) File-Ready Checklist (Broker Edition)
☐ Rehab budget vs. actuals (final draw status)
☐ ARV appraisal (DSCR-acceptable format)
☐ Rent roll + T-12 (or pro-forma with PM letter if newly leased)
☐ Insurance binder (landlord form; correct vesting & loss-payee)
☐ Entity docs unchanged from bridge (or updated early)
10) Why Brokers Run This Through LoanFunders.com
One underwriting team handles both phases—no re-explaining.
White-label option: all term sheets & emails can carry your brand.
Speed: 24-hour DSCR terms, closings in as fast as 21 days (often sooner on 1–4 units).
Call to Action
Send the address, rehab budget, and current rent number. We’ll return dual term sheets—bridge and DSCR—so your client sees the whole journey and you lock the second commission today.
One client. Two closings. Double the income—with half the work.