Topic
Financing
Guides and real deal teardowns on financing.
Debt service coverage ratio (DSCR): the number your lender cares about most
What DSCR is, how it applies to leveraged retail investment property, what to watch for, how to use headroom as a strength, and the best/worst-case outcomes.
Read it →Loan-to-Value (LTV) Explained: What It Means for Net-Lease Buyers
Loan-to-value (LTV) measures your loan against the property's value. Here is what it means in commercial real estate, how it shapes net-lease and retail deals, and how to use it to your advantage.
Read it →Cash-on-Cash Return: The Number I Actually Look At First
Cash-on-cash return measures the cash income a property hands back relative to the cash you actually put in, and it's the number that shows you what leverage is really doing to your deal.
Read it →SNDA Explained: Why This One Agreement Can Make or Break Your Net Lease Deal
An SNDA (subordination, non-disturbance and attornment agreement) protects a tenant's lease if the landlord defaults on the mortgage, and protects a lender's collateral position at the same time, here's how it actually works in a retail net lease deal.
Read it →Internal Rate of Return (IRR): What It Actually Tells You in a Net Lease Deal
Internal rate of return (IRR) captures the full arc of a deal, income, timing, and exit, not just the entry cap rate. Here's how it actually plays out in retail net lease and what to watch for before you trust the number.
Read it →Debt Yield Explained: The Lending Metric That Really Sets Your Loan Size
Debt yield measures a property's net operating income against the loan amount, and it's become the backstop lenders use to cap leverage no matter what interest rates do. Here's how I explain it to clients before they lock a rate.
Read it →The Equity Multiple, Explained: What "2x" Really Means for a Net-Lease Deal
The equity multiple tells you how many total dollars a deal returns for every dollar you put in. Here's how I use it, where it misleads buyers, and how to pair it with time and cap rates on retail net-lease property.
Read it →Break-Even Occupancy Explained: The Line That Keeps a Net-Lease Deal Solvent
Break-even occupancy is the percentage of a property you have to keep leased just to cover operating costs and debt service. Here's how to read it, and why it matters more in retail net lease than most buyers realize.
Read it →Loan Assumption Explained: Buying Commercial Property With the Seller's Existing Debt
A plain-English look at loan assumption in commercial real estate: what it means to take over a seller's existing financing, when it helps you, and where it can quietly cost you. Learn how James Garner, CCIM sizes up an assumable loan.
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