Debt Yield

Debt Yield, commonly referred to as DY, is the ratio of a property or group of properties Net Operating Income (NOI) divided by the loan amount requested. Debt Yield (NOI) refers to a ratio generated from the properties' current NOI, while Debt Yield (Future NOI) refers to the ratio using the future Net Operating income of the properties once improved by the loan funding.

Debt Yield is used as an indicator by lenders to help determine risk in choosing whether or not to make the loan.

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