In the latest episode of the Think Realty podcast, recorded live at their Phoenix Conference & Expo, host Eddie Wilson sat down with Riley Bishop, an account executive at Easy Street Capital for Episode #347: Easy Money on Easy Street: Real Estate Lending Unlocked. Riley, a seasoned real estate pro, shared actionable strategies for thriving in today’s market and leveraging Debt Service Coverage Ratio (DSCR) loans to grow your portfolio. For investors ready to seize opportunities, this episode is packed with insights.
This article will provide a recap of the key takeaways Riley shared.
Who Is Easy Street Capital?
Easy Street Capital is a leading hard money and DSCR-based lender, serving investors in 48 states (excluding North Dakota and South Dakota). Unlike traditional banks tethered to Freddie Mac or Fannie Mae, Easy Street uses private capital to fund a wide range of projects, from fix-and-flips to ground-up construction, bridge loans, and DSCR loans. Closing over $500 million in DSCR loans annually, Easy Street is America’s trusted partner for investors, known for making deals work when others can’t.
Top Real Estate Investing Trends for 2025
Riley outlined several trends shaping the market and driving success for investors. Here’s what you need to know:
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- Focusing on Secondary and Tertiary Markets
Investors are finding success by targeting turnkey properties in secondary and tertiary markets with strong growth potential. As profit margins tighten in high-demand areas like Scottsdale, these less competitive markets offer better opportunities. The most successful investors take a cautious approach by overestimating expenses and planning for worst-case scenarios to ensure consistent cash flow.
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- The Rise of ADUs
Accessory Dwelling Units (ADUs) are gaining traction, with 20% of Riley’s recent deals involving properties that include or plan to add ADUs. Investors are either building ADUs to boost value or using cash-out refinances to unlock equity. With many municipalities loosening zoning restrictions, ADUs are an effective way to boost a property’s income potential.
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- Adapting to Short-Term Rental Changes
The short-term rental market is evolving, with some properties converting to long-term rentals or being listed for sale. Easy Street Capital stands out by underwriting DSCR loans based on short-term rental projections, using tools like AirDNA. For experienced investors (those with at least one short-term rental for a year or three nationwide), Easy Street uses 100% of projected cash flows. For newer investors, a 25% reduction is applied on projections to ensure realistic lending terms.
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- Watching Interest Rates
Investors are keeping a close eye on the Federal Reserve, with potential rate cuts expected in 2025. Lower rates could spark a buying surge and drive up property values, but Riley advises to stay cautious. The market is in a delicate balance, so investors need to be ready to act quickly—or pivot if conditions change.
Why DSCR Loans Are a Game-Changer
DSCR loans are transforming real estate investing by offering flexibility that traditional mortgages can’t match. Unlike conventional loans, which limit investors to 10 properties and focus on Debt-to-Income (DTI) ratios, DSCR loans focus on a property’s cash flow. For example, a DSCR of 1.25 requires $1,250 in rent for every $1,000 in mortgage payments. Easy Street’s “no ratio” DSCR loans can even support properties that don’t break even on paper, with the best interest rates offered at a 1.25 DSCR.
This approach is particularly value for short-term rental investors. Easy Street underwrites based on projected income, not just historical data, making it easier to finance properties without a short-term rental track record—something most traditional lenders avoid.
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- Capital Access: Opportunities and Cautions
The rise of private lenders like Easy Street has made capital more accessible compared to the days of relying on local banks or personal connections. However, lending standards are tightening in high-risk markets like California and Florida, especially for older condo complexes. Easy Street balances opportunity with careful risk assessment to maintain sustainable lending practices.
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- Easy Street’s Broker Program
Easy Street Capital’s broker program, with over 1,000 partners, is a standout for real estate professionals. Offering 100% white-label funding, brokers can present deals without disclosing the backend lender. The program also provides better pricing than retail rates, making it a win-win for brokers and their clients.
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What’s Next for Real Estate Investors?
The real estate market is at a pivotal moment. The National Association of Realtors reports a shortage of over 3 million homes, while annual building permits lag at under 1 million. Potential interest rate cuts could create opportunities, but rising property values may squeeze profit margins. Riley encourages investors to prepare for action while staying adaptable, as economic factors like inflation and Federal Reserve policies could delay expected market shifts.
Get Started with Easy Street Capital
Ready to take your real estate investments to the next level? Easy Street Capital is here to help you navigate the 2025 market with confidence. Whether you’re exploring DSCR loans, targeting secondary markets, or capitalizing on the ADU trend, our team is committed to making your deals work.
Listen to the full Think Realty podcast episode to hear Riley break it all down. Then, reach out to our team to explore how we can tailor a loan to your investment strategy. Click the buttons below to learn more!
About the Author
Marketing Associate at Easy Street CapitalJayne is a versatile marketing professional with expertise in social media content creation, videography, and real estate. A graduate of the University of Texas at Austin, she brings a unique blend of creativity and industry knowledge to her work.Latest posts by Jayne Yi (see all)- Dallas, TX - April 22, 2025
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