Explain debt/equity financing
Anonimo
Equity is the amount of money invested (Skin in the Game) and Debt is the amount of money leveraged (Borrowed Money) 30% Equity 70% Debt = LTV 70% Debt measures risk = DSCR (Debt Service Cover Ratio) (NOI/Debt Service), Debt Yield (NOI/Loan Amount) Equity Measures Expected return =Cash on Cash, Equity Multiple, IRR