Real Estate Investing with Coach Carson #461: Why Most Investors Get Denied for a Loan (and How to Fix It)
Nov 24, 2025
In this engaging discussion, mortgage broker Brian Maddox shares his expertise on why investors often face loan denials. He highlights common pitfalls like inadequate income documentation and the nuances of DSCR loans. Brian explains how banks view income differently from investors and offers practical tips to improve bankability, such as reducing debt and preparing key documents. He emphasizes the importance of choosing the right lender and encourages seeking second opinions on loan applications. Get ready to transform your financing game!
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Tax Losses Versus Lender View
- Lenders add back non-cash deductions like depreciation because they don't reduce bank liquidity.
- Showing tax losses can hurt underwriting unless the lender properly applies add-backs.
Lower Revolving Debt To Boost Approval
- Reduce revolving credit balances and fix late payments to raise FICO scores.
- Refinance or consolidate loans to lower monthly payments and increase borrowing power.
Bankers Often Don't Think Like Investors
- Brian says bankers often misunderstand investors and debt because many don't own real estate.
- He compares bank loan officers to nurse practitioners who diagnose but can't always provide flexible solutions.