Defining DSCR in Commercial Real Estate Lending Debt Service Coverage Ratio represents a fundamental metric in commercial real estate finance that measures a property’s ability to generate sufficient income to cover its debt obligations. This calculation provides lenders with a clear indicator of the margin of safety between a property’s net operating income and its […]

Defining Debt Yield in Real Estate Finance Debt yield represents a crucial risk assessment metric used by commercial real estate lenders to evaluate the safety of their loans. This calculation measures the relationship between a property’s net operating income and the loan amount, expressed as a percentage. Unlike other metrics that rely on projections or […]

Defining Internal Rate of Return in Real Estate Context The Internal Rate of Return represents the annualized rate of return an investment is expected to generate over its holding period. In real estate, IRR accounts for both the timing and amount of all cash flows associated with a property, including initial investment, ongoing income, and […]