DSCR

LTV: Loan To Value in Commercial Real Estate

LTV: Loan To Value in Commercial Real Estate

LTV, or loan-to-value ratio, is one of the most important metrics in commercial real estate. It is used to compare the amount of a loan to the current estimated market value of a commercial or multifamily property.

What is Debt Yield?

What is Debt Yield?

Debt yield is a commercial real estate metric used by lenders to determine how long it would take them to get back their investment if the borrower defaulted on their loan and they had to foreclose on the property. Debt yield is calculated by dividing a property’s net operating income (NOI) by the total loan amount.

What is a Debt Service Coverage Ratio (DSCR)? 

What is a Debt Service Coverage Ratio (DSCR)? 

A TI, or tenant improvement, is an improvement made by the property owner so that the property better fits the need of the new tenant. An LC, or leasing commission, is the real estate agent’s or broker’s commission received after a lease is successfully closed.