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DSCR and Debt Yield: Two Different Ways to Think About Debt Risk
The broker’s email lands on a Tuesday afternoon with the line that sells half of these deals: “Coverage is 1.46x. Comfortable.” If you are a passive investor reading a pitch deck, or an owner underwriting a purchase, that number can feel like permission. The building looks full. The renovations look scheduled. The debt service coverage…
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The Five Numbers We Want Before Believing a Value-Add Rent Story
The offering memorandum lands with the line that sells half of these renovation packages: “In-place at $1,100. Renovated comps asking $1,350. Two-fifty a month of upside.” Multiply by unit count, annualize, and the business plan starts to feel inevitable. If you are a passive investor reading a pitch deck, an owner underwriting a purchase, or…
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A Five-Year Sale Should Improve Optionality, Not Rescue the Investment Thesis
The pitch deck opens with a clean five-year internal rate of return (IRR). Rent growth is tidy. The renovation finishes on schedule. Year five shows a sale at an exit capitalization rate that looked reasonable the day the slides were printed. If you are a passive investor reading that packet, or an owner underwriting a…
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How to Evaluate a Multifamily Sponsor Without Relying on the Pitch Deck
The deck arrives on a Thursday night with slide three circled: a projected internal rate of return (IRR) in a tidy band, a renovation schedule that looks orderly, and a track-record table that looks long. If you are a passive limited partner (LP) reading that packet, those numbers can feel like the hard work is…
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A 95% Occupied Property Can Still Have a Collections Problem
The weekly leasing flash hits the inbox before lunch: 95% occupied. If you are an owner, a passive investor reading an operating report, or anyone underwriting a purchase, that number can feel like permission. Halls look full. Cars are in the lot. The leasing team gets the win. You might stop asking hard questions about…
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T-12 Normalization: The Seller’s NOI Is a Starting Point, Not the Answer
A multifamily T-12 shows reported history, not necessarily buyer economics. Here is how revenue and expenses should be challenged before trusting NOI.
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The Property Should Not Have to Outrun a Moving Mortgage Payment
A real Houston multifamily foreclosure shows why debt structure belongs inside the business plan and why Heartland Gate favors fixed-rate acquisition financing.
