Novice investors obsess over interest rates (7% vs 6%). Sovereign investors obsess over the Spread. If the interest rate is 7.5% but the property yields a 12% cash-on-cash return, you buy the property.
The Directive
Stop waiting for rates to drop. This is especially true in high-demand markets like Fulton County and DeKalb County, where waiting on the sidelines often means being priced out of the neighborhood entirely
- Scenario A: Wait 2 years for rates to drop 1%. Prices rise 10%. You lose.
- Scenario B: Buy now. Cash flow today. Refinance when rates drop. You win.
The Logic Gap: DTI vs. DSCR
Traditional banks often kill momentum by obsessing over a borrower’s Debt-to-Income (DTI) ratio. In contrast, the Southern Legacy Fund utilizes an asset-based approach, underwriting the Debt Service Coverage Ratio (DSCR) of the property itself to ensure the investment stands on its own merits.
The Strategy
“Date the rate, marry the house,” says Heather Sharpe, Closing Specialist. “You can always refinance the interest rate. You can never renegotiate the 2026 purchase price five years from now.”
Does the deal pencil out? Don’t guess.
Email the Rent Roll and Purchase Price to Heather@InvestorUnderwriting.com.
I will calculate the DSCR Spread and give you a definitive “Buy” or “Pass” recommendation based on current market rates.
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