What does a foreign investor contemplating taking out a bank loan need to know about Debt Service Coverage Ratio (DSCR)?
My company is evaluating purchasing a residential multi-family property outside of Miami valued between $100-$125 million to our U.S. portfolio. We have invested in the United States before – in a senior living property outside of Dallas. As a Chinese developer, we have funds currently tied up in other developments and would like to take out a bank loan for part of the cost of the new acquisition. We understand that lenders may calculate DSCR in different ways. We have little debt, but what should we be aware of before speaking to banks?