Debt Service Coverage Ratio (DSCR) in Commercial Real Estate
Nearly all commercial real estate transactions are financed with some combination of debt and equity. The equity comes from the property owner and/or their investors, while the debt comes from a bank or non-bank lender. The exact mix varies by transaction, but equity typically represents 15%–25% of the purchase price, with debt covering the remaining 75%–85%. One of the […]
