For real estate investors, understanding and calculating capitalization rates (cap rates) is a key metric for forecasting return on investment (ROI). But, for those new to real estate investing, the concept of cap rate can be a bit confusing.
Debt yield is a key metric that lenders use to determine how long it would take to recoup losses in the case of borrower default. It is calculated by dividing the net operating income generated by a property by the total amount of debt used to purchase that property. This figure allows lenders to evaluate borrowers and make sure they’re reducing risk as much as possible.
A DSCR loan also helps lenders to protect themselves from default. If the borrower’s income is sufficient to cover their debt service obligations, the lender can rest assured that their loan will be repaid. This helps mitigate the lender’s risk and allows them to offer more competitive loan terms to the borrower.
Are you a business owner looking for financial assistance? If so, you may be considering taking out a commercial loan. As one of the most popular types of business financing, commercial loans can be a great way to fund your business’s growth. But there are a number of different types of commercial loans available, so it can be hard to know which one is right for you.
Are you a business owner looking for a way to increase your working capital? Purchase order financing may be the answer. This type of financing is a great option for businesses experiencing a cash flow gap due to the cost of goods and services.
Have a Solid Funding Plan — But be Ready to Change it Most business stories say that you must have a business plan, and you do. But that’s not the beginning nor the end of figuring out your start-up funding needs. Jeff Shuman, the director of entrepreneurial studies at Bentley College, offers an important piece…