I was looking at the lenders tab on this site, and found a loan that caught my interest. What does D/E mean in the loan details? Is that the debt ratio?
thanks, I thought so. Why is such importance placed on debt ratio. I mean geez, of course the darn ratio goes up every time I buy a property, so who cares if the ratio is 60% if I have the property as collateral? What is the real likelihood of all my properties being vacant at once? For that matter, who said I was going to keep them anyway. What if I am reselling for profit and just need some capital to get into the property? D/E doesn't make me very happy lately........
"To play the game you must follow the rules." The ratio is a baseline used to determine if there are enough incoming funds to cover the new debt. Makes sense to us! You must present your documented strategy as to HOW you will repay the loan on a MONTHLY basis.
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Scott,Yes it is the debt/earnings ratio.
thanks, I thought so. Why is such importance placed on debt ratio. I mean geez, of course the darn ratio goes up every time I buy a property, so who cares if the ratio is 60% if I have the property as collateral? What is the real likelihood of all my properties being vacant at once? For that matter, who said I was going to keep them anyway. What if I am reselling for profit and just need some capital to get into the property? D/E doesn't make me very happy lately........
"To play the game you must follow the rules." The ratio is a baseline used to determine if there are enough incoming funds to cover the new debt. Makes sense to us! You must present your documented strategy as to HOW you will repay the loan on a MONTHLY basis.
[addsig]