Ever wonder why so many term sheets target a 1.25x DSCR and how structure — not just rate — can push you over that line? A 12‑month interest‑only runway or a 10‑year term on a 25‑year amortization can free cash to fuel growth while revenue catches up; this is general info only, so run your own numbers and do independent research.
I’ve nudged borderline files over 1.25x by asking the UW to use ‘trailing‑12 NOI with verified add‑backs’ (documented one‑time repairs, lease‑up concessions) instead of last fiscal year; caveat: some shops still stress to a floor rate or globalize, so ask how they define NOI — anyone getting credit for normalized owner comp lately?
Alongside that ‘12‑month interest‑only runway’, the tweak that’s saved my borderline files is asking UW to size at the actual fixed note rate (or the cap strike on floaters) instead of a 150–200 bps stress; that 25–50 bps swing can lift DSCR to 1.25x. Have you had better luck getting that from banks or debt funds — worth a shot when you’re within about 0.05x, but run your own numbers.