What does Global Cash Flow mean?

To start, this topic is not just about the property you are buying or refinancing. For a lender, Global Cash Flow (GCF) means underwriting will look at the NOI of each property held by each majority owner (20%+ ownership) or managing members (if an LLC). Then, they will group the NOI of all these assets together as if it were just one asset (hence Global). If the result is cash flow positive, and an acceptable GCF DSCR is achieved, you will be okay in this analysis.

Do all lenders use GCF? Most lenders will perform this borrower stress test as a final condition of approval including all GSE lenders. Are there any offsets? Yes, for example, if the borrower(s) have other sources of revenue (not part of the real estate revenue) or the portfolio has a low overall LTV, we can submit a waiver.

When preparing your financial statement, it is important to include details about all your real estate assets on a separate page to make this GCF element of loan approval go smooth. Generally, you will provide a current snapshot of income, expenses, and debt payments for each asset. Keep in mind, that there are certain expenses that can be omitted like depreciation and capital improvements. If you have any questions, let me know. Thanks!