Posted by ray@lcorn on August 10, 2003 at 15:13:42:
The lender will be concerned with the debt coverage ratio for their loan, and some will use the cumulative debt coverage ratio of all financing. Depends on their criteria and underwriting standards. Also, they will calculate the DCR after deducting for fee management and capital reserves from the NOI if you haven’t already done so.
Much will depend on the size of the loan and your track record (experience level). With no cash in the deal, you’ll need to peg the meter on credit, capital reserves and experience. The property will have to be stable, no deferred maintenance, and professionally managed.