Turn Vacant Units into New Loans: How PMs Earn Fees by Introducing DSCR Refinances

Author

George Tsividakis
August 25, 2025

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.