Tardus Money Moves · San Diego

Two ways to finance a rental.

Most people have only ever been shown one of them.

Anything in amber is a note from me to you. It comes out before you stand up.

Brendan Kolesar · NMLS #260655 · Arbor Financial Group, Inc. · Corporate NMLS #236669 · DRE #01845041 · Equal Housing Lender

Illustrative figures. Not a rate quote or a commitment to lend.

First

Get your phone out.

Point your camera at the code. No app, no sign up.

You will answer three questions and run your own numbers.

You can send me a question at any point. Nobody sees your name.

Or open

kolesar-session.pages.dev

and type the code

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Introduction

Who I am.

A career inside mortgage banks. Two years as a broker.

Approved with 150 banks. I use about a dozen.

I own rentals myself.

Your site says 13 states, your homepage says 14, an Arbor bio says 20. Which is it?

The problem

Why banks say no to you.

You are aggressive on taxes

Your CPA made your income look small. The bank believes them.

You are self employed

Two years of returns, and a paper trail for every deposit.

You live off your assets

You have money. You do not have a pay stub.

You run a snowball

Cash moving on purpose. To them that looks like a red flag.

There is a loan where you can not have a job, frankly.

Part one

01

Two kinds of loan.

One checks you. One checks the house.

Loan one

Conventional loans.

They check you. Tax returns, pay stubs, debt to income.

Anything unusual has to be documented. Not explained.

Cheapest money in the country, if you fit it.

Fannie and Freddie wrote these rules. Your lender just applies them.

The limit

Conventional stops at ten.

10

financed properties, and then there is no eleventh loan.

Most people find that out the year their portfolio finally works.

Loan two

DSCR loans.

They check the house. From you, only a credit score and assets.

No tax returns. Nobody asks what you do for a living.

The test is whether the rent covers the payment.

No limit. Buy as many as you want.

The test

Does the rent cover the payment?

1.38

$2,600 rent ÷ $1,888 payment

It qualifies

A $350,000 duplex, 25% down. Anything at 1.00 or better is a loan. That is the whole test.

Put your own price and rent into your phone.

Rent, taxes and insurance are my guesses. Send me one duplex you priced this month and these become real.

Your turn

Have you heard of interest only?

Answer on your phone.

The gap between the second bar and the third one is the rest of this talk.

A client

A client who said no.

Several properties. All conventional. A hard no on interest only.

Then she looked at the numbers on her own deal.

She closed one last week.

I need Christa’s okay directly and her spelling. Thirty seconds of her on video beats this whole slide.

Part two

02

Interest only loans.

A thirty year loan where the first ten years are interest only. About 99% of my investors take it.

The product

What interest only is.

Still a thirty year loan. It is not a balloon and not a teaser rate.

You skip principal for ten years. You can still pay it any month.

When you do pay it down, the payment drops and stays down.

Principal is not a cost. It is a savings account with a lock on it.

Compare

Same duplex, three loans.

Conventional

$1,724

6.875%

DSCR

$1,638

6.375%

DSCR, interest only

$1,422

6.5%

Which one would you take? Answer on your phone.

$350,000 duplex, 25% down. Par pricing off my sheet, 8/28. Taxes and insurance sit on top of all three the same.

The trade

What interest only costs you.

Five years, conventional

$15,738 paid down.

Real, but you cannot touch it without selling.

Five years, interest only

$18,154 in your hand.

Nothing paid down. The same balance you started with.

Year one of any loan is 87% interest. There was not much principal there anyway.

The other use

It also helps you qualify.

Paying principal

Needs $2,104 rent.

Below that, there is no loan.

Interest only

Needs $1,888.

Same house, same buyer, lower bar.

$216 of rent. That is the band where a deal dies one way and funds the other.

The lever

Paying it down lowers the payment.

Pay in $10,000

$1,368

$650 more a year

Pay in $20,000

$1,314

$1,300 more a year

Pay in $50,000

$1,151

$3,250 more a year

On a normal loan this shortens the term and the payment never moves.

The catch

The prepayment penalty.

Zero to five years, and it is priced. Most people take three.

It is six months of interest. On this loan, about $8,531.

You can pay down 20% a year without triggering it. That is $52,500.

It only bites if you sell or refinance early. Hold five years and you are past it.

Your turn

What would you do with the extra $303?

Answer on your phone.

$303 a month is $3,631 a year, on one duplex, for as long as you hold it.

Get me the run from Jackie’s coach and this slide gets the real snowball number under the bars.

Today

This week’s rates.

Conventional

6.875%

Cheapest, if you fit it.

DSCR

6.375%

Half a point under. Nobody expects that.

DSCR, interest only

6.5%

$303 a month under conventional.

My sheet, 8/28/2026 · refreshed the morning of this talk

If you priced one of these in 2022 and wrote it off, your information is expired.

Proof

Four loans that should not have worked.

The student

First time buyer. Owned no home at all. Funded.

The seller

Had just sold their house. Textbook decline. Funded.

Jerry

Hated documenting deposits. DSCR never asked.

Colin

Georgia cabin. Dead set against interest only. Then he saw the numbers.

Confirm Jerry and Colin are fine being named, and give me first names for the other two.

Pricing

Why a broker costs less.

A bank

Layers of management, paid out of your rate.

Margin is set upstairs. Nobody on your call can change it.

A broker

I set it deal by deal.

A dozen banks bidding, and I decide what I make. About 1%.

I am not going to bash anybody. I worked at those banks. It is a structure problem, not a people problem.

Questions

You don’t need the right time.
You need the right strategy.

01 Conventional checks you, and it stops at ten.

02 DSCR checks the house, and it does not stop.

03 Interest only lowers the payment, and sometimes it gets the loan.

Scan. I’m in your phone.

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