In this episode, Jason Williams and Frank Patalano break down Debt Service Coverage Ratio (DSCR) and why it’s one of the most important, yet often misunderstood, metrics in commercial real estate financing. They go beyond the basic formula to uncover how DSCR impacts loan sizing, lender expectations, and investor returns. The conversation highlights real-world scenarios, common pitfalls, and how external factors like rising expenses or interest rates can quietly put deals at risk even when payments are current.

Topics Covered

• What DSCR actually measures and how it’s calculated using NOI and debt service
• How lenders use DSCR to determine loan proceeds and risk tolerance
• Typical DSCR requirements across different loan types including agency, bank, CMBS, and bridge debt
• Why DSCR covenants in  ...