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Debt yield is a useful CRE mortgage underwriting test because: a) Its based on value, and that can be baked / manipulated b) It works

Debt yield is a useful CRE mortgage underwriting test because:

a) Its based on value, and that can be baked / manipulated

b) It works on turnaround properties or ground-up construction before leasing

c) The calculation is simple: NCF / minimum DSCR / loan constant

d) It pushes aside IO vs amortization DSCR and simply looks at NCF vs the Loan Balance

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