Real Estate Investment Terms Made Simple
Don't worry! The world of real estate can be full of confusing terms and jargon, but you don’t have to figure it all out on your own. The team at BrightBridge Realty Capital has put together a comprehensive glossary of the most frequently used real estate investment to help you navigate the space with ease.
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A type of real estate financing primarily used by investors, where the loan approval is based on the property's ability to generate enough income to cover the debt payments. The Debt Service Coverage Ratio (DSCR) is a key metric used in this type of loan, calculated by dividing the property's net operating income (NOI) by the total debt service (loan payments). A DSCR of 1 or higher indicates the property generates enough income to cover the debt, making it an attractive option for investors who may not have a traditional income or strong credit score, as the focus is on the property's income-generating potential rather than personal financial history.