Re: DCR and Pro Forma with Percentage Rents - Posted by Tom - WA
Posted by Tom - WA on July 05, 2001 at 12:45:55:
Thanks, Ray! If I may pursue the DCR question a bit further:
The borrower has a specific amount they need, say $3mil. You know from a databank search that the top lenders showing up want a DCR of, say, 1.2, and they’ll lend the $3mil at, say 9%. Do you then assume that you can quote that to the borrower?
And can you just put 1.2 on your Executive Summary in the loan package? I guess I’m confused when you say you “start with the lender’s required DCR and work backward into the loan amount,” because the borrower usually needs a specific amount, regardless.
Hurry up with that book!
Thanks for the help,