Beyond IRR

DSCR Is for Lenders — But Investors Should Love It Too

Louis Hiza Season 1 Episode 4

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0:00 | 24:16

DSCR is one of the most talked-about metrics in real estate — and for good reason. It answers the most basic question every leveraged investor feels: can this property pay the mortgage?

In this episode, Louis Hiza breaks down why DSCR matters to both lenders and investors, while explaining why it’s still only one piece of the puzzle. Through several real-world deal examples with actual numbers, he shows how a property can have a strong DSCR but weak investor returns — or a lower DSCR with far better capital efficiency.

Along the way, we explore how Debt Yield, Equity Yield, and margin-of-safety metrics reveal the deeper structure of a deal and help investors understand not just whether a loan survives, but whether the investment truly performs.