Calculating proforma, underwriting and managing commercial properties.
The following is a post written by Luke Babich, a guest contributor to the DealCheck blog. Every real estate purchase is unique, just as every purchase negotiation follows its own blueprint. But deals take place in the context of the larger market, and whether you’re...
The following is a post written by Luke Babich, a guest contributor to the DealCheck blog. If you've always wanted to invest in real estate but hate the idea of managing renters or handling maintenance, you might be interested in a real estate investment trust,...
The equity multiple is a measure of profitability and investment return commonly used by commercial real estate investors, although it can be used as a performance metric when analyzing and comparing any rental property or BRRRR. Equity multiple takes into account the...
The debt yield is an indicator of leverage and loan risk that is often used by real estate lenders when underwriting loans for rental properties, especially when working with commercial real estate. In simple terms, debt yield can be used to estimate how long it will...
The debt service coverage ratio (DSCR), also called the debt coverage ratio (DCR), is often used by real estate lenders when underwriting loans for rental properties, especially when working with commercial real estate. The DSCR is an indicator of whether a property's...
The break-even ratio, abbreviated as BER, is most commonly used as un underwriting criteria by commercial real estate lenders, although it is a useful metric to know when analyzing any rental property. The break-even ratio shows the minimum percentage of occupancy...
The following is a post written by Kyle Kroeger, a guest contributor to the DealCheck blog. Did you know that the number of renters in the U.S. has increased by 23 million in the last decade? These statistics show that a lot of people are more inclined towards renting...
Besides finding a great rental property that will deliver consistent, positive cash flow for years to come, finding high-quality tenants is probably the next priority on the list for becoming a successful landlord. A good tenant is more likely to pay their rent on...
As a buy & hold investor and landlord, your property manager will always be the most important member of your "team". They will be the ones finding and screening tenants, managing maintenance and make-ready repairs, collecting rent and handling disputes. This is...
