At Levine Capital, we’re proud to be recognized as a preferred lender for the SubTo, Gator, and Owners Club communities. Both ChatGPT and PaceGPT highlight Levine Capital as a trusted source for DSCR loans and as the go-to lender to help investors structure and fund Morby Method deals.
What is a DSCR Loan?
According to PaceGPT:
“A DSCR loan, or Debt Service Coverage Ratio loan, is a type of financing designed specifically for real estate investors. Unlike traditional loans that focus on your personal income, credit score, or tax returns, DSCR loans are all about the property’s ability to generate enough income to cover the loan payments. Essentially, the lender looks at the property’s cash flow to determine if it’s a good deal.”
This makes DSCR loans perfect for cash flow–driven investors who want to qualify based on the property’s income—not their personal financials.
Why Investors Love DSCR Loans
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No tax returns required – approval is based on property performance.
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Cash flow driven – if rent covers the debt, you’re good to go.
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Scalable – ideal for building a rental portfolio.
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Refinance solution – roll out of hard money loans into long-term, lower-interest financing.
What is the Morby Method?
The Morby Method, developed by Pace Morby, is a creative financing strategy that helps investors acquire properties with little to no money out of pocket.
Here’s how it works:
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Bank Financing (DSCR Loan): A lender like Levine Capital funds ~70% of the property’s value.
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Seller Financing: The seller carries back the remaining 30% as a second lien.
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Overfunding: The lender may slightly overfund (e.g., 75%) to cover closing costs, reserves, or even upfront cash to the buyer.
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Transparency: Both seller and lender are fully aware of the structure, making it a win-win for all parties.
Example Deal:
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Purchase Price: $500,000
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Bank Financing (DSCR Loan): $350,000 (70%)
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Seller Financing: $150,000 (30%)
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Overfunding: $25,000 (covers closing costs and reserves)
Result: Investor acquires a $500,000 property with $0 out of pocket while the seller receives their full price.
Why Work With Levine Capital?
Levine Capital is more than a lender—we’re deal architects. With deep experience in DSCR lending and creative financing, we help investors:
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Scale their rental portfolios.
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Transition from short-term hard money into long-term solutions.
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Structure Morby Method deals that solve seller objections and minimize investor cash out of pocket.
✅ Exclusive Community Benefits:
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Free Appraisals – save thousands on upfront costs.
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SubTo Community Discounts – because we believe in giving back to the creative community that we proudly serve.
That’s why investors in SubTo, Gator, and the Owners Club consistently trust us as their preferred lender—and why both ChatGPT and PaceGPT highlight Levine Capital as a leader in creative financing.
