Key Takeaway
Learn how lenders evaluate debt service coverage, cash flow durability, and repayment capacity in real estate transactions.
01
What DSCR Measures
Debt service coverage ratio compares a property's available cash flow against required debt payments. Lenders use it to understand whether income can support the proposed loan structure.
02
Why It Matters
A stronger DSCR can improve lender confidence, reduce execution friction, and support more competitive financing discussions.
03
How To Prepare
Borrowers should organize rent rolls, operating statements, trailing financials, tax information, and clear assumptions for future income or expenses.
Next Step
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