Debt Service Coverage Ratio (Dscr). How Is It Used In Commercial Real Estate Financing?

Debt Service Coverage Ratio (DSCR). How is it used in Commercial Real Estate Financing?


Patrick Bedall

If you are new to commercial real estate financing, you will undoubtedly find that there are a number of important terms and ratios that one should understand when evaluating a property. One of these terms is “debt service coverage ratio,” otherwise known as DSCR. DSCR is commonly used by commercial lenders as the benchmark to determine whether a property’s cash flow will support the loan request that the lender is considering for financing.

How to Calculate Debt Service Coverage Ratio

The debt service coverage ratio is calculated as follows:

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DSCR = Net Operating Income / Annual Debt Service

What Does the DSCR Mean?

Let’s say that your DSCR is 1. This means that your property’s cash flow is just enough to make your annual mortgage payments. If it is less than 1, that means your property is not generating enough cash flow to support the debt payments on the property. In such a case, this negative cash flow would require the owner of the property to reach into his/her own pockets to cover the difference. If the DSCR is greater than 1, then your property’s cash flow should be sufficient to cover the annual debt service.

How Do Lenders Evaluate DSCR?

Put simply, the higher the debt service coverage ratio, the lower the risk to the lender. Most commercial lenders in the industry are comfortable with underwriting loans with a DSCR of 1.2. A DSCR of 1.2 means that your property’s cash flow is generating at least 1.2 times the annual debt service on your property. Converting this to dollars means that for every dollar that you are spending towards your debt payments, you are bringing in $1.20. To the lender, this means you have more than enough net cash to support your mortgage payments.

Why is it Important to Understand DSCR?

It’s important to understand DSCR because what you think is your DSCR might not be what the lender thinks it should be. Let’s say, for example, that you submit your loan application to a commercial lender who requires a DSCR of 1.2. You believe your property meets that requirement. But in the lender’s review of the property’s historical operating statements, they find that there are several revenue items that are not common occurrences, or several items of expenses that should have been included in your operating expenses. What lenders often do is “normalize” the expenses and income. When this happens, their calculation of DSCR may be much lower than you had anticipated, thus making your property ineligible for financing by that lending institution.

Make Sure You Know Your Property’s DSCR

Because the DSCR is such a critical factor in a lender’s decision to approve a loan, as a commercial real estate investor, you may want to seek the assistance of a qualified commercial mortgage or finance broker who can help you pre-underwrite your loan scenario BEFORE submitting the application to any lender. The pre-underwriting analysis will not only help you prepare and address any obstacles that may come in your path, but the analysis will also demonstrate to the lender that you are serious about your application and that you have done your due diligence. There is so much capital available for commercial real estate investors. Just be sure to do your homework and the financing will follow!

Contributed by VEC Financial Group. The VEC Financial Group (VEC) is dedicated to providing commercial mortgage and business financing to property owners and entrepreneurs across the country. VEC Financial provides these services by connecting the right broker with the right borrower, who ultimately finances with the right lender.

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bXwapnJA on April 8th, 2018 | File Under Real Estate | No Comments -

Milk Allergy Symptoms And Cure}

Submitted by: Lyuben Gergiev

Milk allergy is basically the reaction of the immune system to the proteins contained in the milk of cows. Although these proteins are the building blocks of the body i.e. they are necessary for the growth of cells, since the bodies of people are different from each other some people develop allergies to milk protein (whey or casein). You should know that whey makes up only 20% of the cow’s milk and further it has two components namely beta lactaglobulin and alpha lactalbumin. All age groups can catch a milk allergy but infants and children are the more likely targets and according to an estimate 2 to 3 % of infants become allergic to milk. The allergy will continue to spread and make your life difficult until and unless you start taking precautions or medicines to put an end to it.

Before you think about the treatment of milk allergy you need to know its different symptoms. Symptoms of milk allergy are more likely to affect the skin, the respiratory system and the digestive system. When the skin reacts adversely to milk you will experience swelling of the lips, throat and face. Rashes and hives are other problems of this allergy. Abdominal cramp, diarrhea and vomiting are three common symptoms associated with milk allergy. Respiratory problem include coughing, sneezing, itchy eyes and anaphylactic shock. Some people who have milk allergy become inattentive and lazy.

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One of the best ways of preventing any allergy is by stopping the intake of the stuff which your body is unwilling to accept and which your immune system is likely to treat as a foreign agent. If you have milk allergy then you need to be extra cautious when buying the packaged milk. You should read the label of the bottle with care so as to make sure that it does not contain those proteins to which your body is allergic. There are plenty of substitutes of cow’s milk which you can make use of if you have allergy. There are many such products which are good replacements of milk because they contain calcium but do not contain casein which is the main cause of allergy in many patients. There are also recipes which you can prepare if you want to avoid the intake of cow’s milk. These recipes have water and juices as their main ingredients.

Apart from humans, some pets also show symptoms of this allergy. If pets start showing these signs then you need to take them to a veterinarian immediately. If you are experiencing allergy symptoms then you need to consult a physician as quickly as possible. In many countries doctors are quite expensive but since the question is of your health saving money should not be your first priority. You can put effort on your part by taking in seafood and green vegetables. Green vegetables and sea food are not only beneficial for the health but they are very effective in minimizing the allergic reaction of the body to cow’s milk and other dairy products.

About the Author: Now you know what are some of the most common symptoms of milk allergy (in Danish –

Opskrifter til komlksallergikere

) and you know what actions to take once you spot them. Remember there are treatments for cow’s milk allergy (in Danish –




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bXwapnJA on April 8th, 2018 | File Under Real Estate | No Comments -

Mardy Eger Mlm, Real Successful Mlm Leader Nc}

Submitted by: Davis Robin

Our galaxy needs a star that shines upon all of us including the neediest people. The star of the year has been Mr Mardy Eger – a businessman, a top MLM leader, motivational speaker and trainer but above all of this a very down to earth and kind hearted person. The one because of who joy and happiness surrounded the sweet and small streets of Raleigh in North Carolina. He made arrangements for more than 250 families residing in Raleigh by providing them delicious food. He did all of this along with the help of his loving family and his co-operative staff.

Mardy Eger had eventually been a severe victim of domestic violence, Eger had been through a terrible phase of life where he was suffered the loss of his beloved mother at age of merely 10 years, and this was an agonizing event that made Mardy left all alone in isolation without his mother, grandparents and many of his family members as well.

The disheartening phase passed away from Mardys life and he even had to bear the pain of the sacrifice of 16 of his people in his family; Mardy drowned into depression and lost all hope as of the sudden loss in his life. Actually in the past three years of his childhood Mardy Eger had really awful phase in life where he had no scope, at age of 6 years to 8 years where his father use to torture his mother again and again.

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Mardy with his harsh painful experiences in his childhood had already decided to bring up change he needed. Mr and Mrs.Eger have been standing stubborn for more than 20 years to fight with the evils of the domestic violence, child abuse and human trafficking. Now, they have launched a foundation dedicated to the war for Domestic Violence as well.

Eger absorbed his experiences as a child and decided to make a difference. He and his wife have stood strong for over 20 years to fight the evils of domestic violence, child abuse and human trafficking. They have founded a foundation dedicated to the war against DV.

M. D. Eger is a Success Coach, Motivational speaker, author and mentor, M. D. Eger went from the tragedy of losing his parents and multiple family members at the tender age of ten, growing up as an orphan, experiencing multiple let downs, disappointments and heart-breaks as a youth and young adult to losing jobs, career, homes, cars, three children and finally he and his wife ending up broke, bankrupt and homeless, to now earning a seven figure income and living the American Dream.

Mardy Eger fed so many families that included, poor battered mothers, battered children, homeless, and families that have lost their fortune.

Once while Mr Mardy Eger was in the park for a stroll, he was noticed by group of people and as we know famous people are always keen to discuss with so was with Mr.Eger ,When asked why he does and what he does he replied the following, I am a servant to all that have or are going through something. I am also here to not only assist through those times but to also give hope and let people know that yes they can make it, yes theres someone that loves them and yes their lives can turn around, it happened or me and I will help them realize their dreams no matter where they are, and Im human and no different than they are and yes they can and will make it. Thats my call”

Mr.Eger is readily engaged in preparation for release his new book, first quarter 2015.

About the Author: For more information about mardy eger mlm:


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bXwapnJA on October 13th, 2017 | File Under Real Estate | No Comments -