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3 Reasons to Refinance Your Multifamily Property Now

Debt is an integral part of real estate for most investors. There are a myriad of different strategies and schools of thought regarding debt and real estate. The purpose of this post is not to offer ideas on which approach is best, but to simply to offer 3 compelling considerations as to why it makes sense to take a hard look at your existing debt on your commercial multifamily real estate.

1. Interest Rates are Still Low, But on […]

Miami Real Estate

Understanding BSPRA on an FHA 221(d)(4) Loan

Raising equity in any real estate deal is a hurdle that must be successfully navigated to find success. Equity investors make many real estate deals possible when the equity requirements exceed the sponsors capabilities or risk tolerances. Conversely, increasing leverage means using less “raised equity” so the sponsor retains more profit and ownership.

Accessing the highest leverage percentages in the industry is very attractive to developers, because they want to preserve cash for their next project. This is usually one […]

Building in Financial District

What You Need to Know About Debt Service Coverage Ratios

Debt Service Coverage Ratio (DSCR) is an important constraint to understand when determining the leverage of your commercial multifamily loan.  In fact, it is likely the first thing that your lender will look at when determining your loan amount.  

What is the DSCR?  

Debt Service Coverage Ratio represents the amount of cash flow you have left over after expenses divided by your debt payments on the property. This is calculated on an annual basis.  Simply put, the […]