How would a broker know my DSCR if they dont know my financing?

[Jim Growfer]

I'm wholesaling apartment buildings and connecting with brokers

If i tell them that my criteria is 10% Cash on Cash return and at least 1.4 debt service, how would they be able to know without knowing my financing?

[Greg Dickerson]

It's all about CAP rate. Thats's how properties are valued and marketed in some cases. That' really what you should be looking at Cash on Cash and IRR will all be predicated on the the cash down and loan terms. You need to model financials on your loan metrics, down payment and investor requirements and then work backwards into a CAP rate. If you're just planning to wholesale all you need is a good CAP rate and a motivated seller.