DLC BLOG
Debt Service Ability. A renewed lender focus
Debt Service Ability. A renewed lender focusDebt Service Ability. A renewed lender focus it seems. As interest rates firm, valuations are impacted, and cap rates begin to firm. What about Debt Service Ability?
It is becoming more apparent that property income, and more specifically net operating income available to service debt, has a significant and growing influence on the amount of debt available to a commercial property owner.
This is increasingly evident with lender attitudes as well. Cash is King to your commercial lender, notwithstanding the relative amount of leverage on your asset.