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Insurance Is a Bid, Not a Line Item
Picture a buyer with a model that looks finished. Rents are supported, taxes have been rebuilt, and the insurance line came straight off the seller’s trailing twelve months (T-12) statement: $66,000 for 120 units. Three weeks before the deposit goes hard, meaning it can no longer be refunded, the buyer’s own broker sends the first…
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Fixed-Rate Debt Still Has Maturity Risk
Fixed-rate multifamily debt stabilizes the payment during the term. It does not remove refinance risk at maturity. Here is how to stress-test that risk before you underwrite the deal.
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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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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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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.
