What is Debt Service Coverage Ratio (DSCR) and How to Use It скачать в хорошем качестве

What is Debt Service Coverage Ratio (DSCR) and How to Use It

This video breaks down in simplified terms the concept of DSCR and provides examples of how investors and banks use it in real estate. ------------------------------- HOUSE HACKING RESOURCES🏡💵💲: If you’re just starting out and considering buying your first house hack, check out my free ebook: The House Hacking Success Checklist. It will go over 7 things that you should be working on and making sure you do BEFORE you buy your first house hack! Check it out here: https://mailchi.mp/a97196c03faa/house... Join my Free House Hack Mastery Group over on Skool.com, link here: https://www.skool.com/house-hack-mast... AFFILIATE / VIDEO LINKS & FREE GIVEAWAYS: If you are a mom & pop landlord, check out this 100% free property management software: baselaneaffiliateprogram.pxf.io/LXqNZo manage all your rental property finances in one place no more spreadsheets and no need to pay for Quickbooks or other accounting software subscriptions free rent collection and ACH transfers allows for multiple online bank accounts best part is that there are no hidden fees My favorite tenant screening service (RentPrep.com): https://bit.ly/3XLxUviRentPrepAffiliate sign up for a free account have your applicants pay for tenant screening directly to the site no more need to collect application fees Watch my review and tutorial here:    • How to Screen Tenants in 2021 | RentPrep.c...   Best platform for finding off-market real estate deals (PropStream.com): https://trial.propstreampro.com/succe... sign up for a free 7-day trial to test it out! tons of features for finding and marketing to motivated sellers and cash buyers Watch my review and tutorial here:    • Video   Rental property analysis video playlist:    • How to Analyze a House Hack Listing   My free sample rental application: https://mailchi.mp/3050a8472b29/sampl... Watch the video here:    • Include THIS in Your Rental Applications |...   ---------------------------------- Instagram:   / succeed_rei   Facebook pages:   / succeedrei     / serenity518   LinkedIn:   / vitaliyvolpov   TikTok: https://www.tiktok.com/@succeedrei?_t... Attorney Profile: https://www.woh.com/attorneys/79/vita... My blog: http://www.succeedrei.com My real estate brokerage: https://www.serenityrealestate518.com/ ------------------------------------- The term DSCR stands for “Debt Service Coverage Ratio.” It is a financial metric used to evaluate a property's ability to generate enough income to cover its debt payments and to assess the risk and feasibility of a real estate investment. While it is one of the more obscure metrics, it’s definitely one that you should become familiar with if you’re going to be dealing with any commercial and non-owner occupied loans for your rental properties. Here's how it works: In order to calculate the DSCR, you'll need to divide the property's net operating income (NOI) by its total debt service (TDS). The NOI is the property's income from rent and other sources, minus all of its operating expenses. Operating expenses do not include TDS and TDS is all principal and interest payments owed to a lender for that particular property. When doing this calculation, you would typically calculate it on a monthly basis, but it comes out to the same ratio on an annual basis as well. DISCLAIMER: please note that the information contained in this video is for educational and entertainment purposes only. You should always consult your own attorney and your own financial and tax advisors before making any legal or financial decisions. This video is not intended to and does not create any attorney-client relationship between the content creator and the viewer. The views and opinions expressed in this video belong solely to the creator and do not reflect those of his law firm or any of his business partners.