Your NOI Is Not Your NOI Until the Lender Agrees

The number the owner believes in may not be the number the lender uses.

Owners know the property. Lenders know the file.

Insurance increases, tax resets, vacancy assumptions, management fees, repair add-backs, nonrecurring income, deferred maintenance, and capex reserves can all reduce underwritten NOI.

Lower NOI can mean lower proceeds, more conditions, more reserves, and less leverage.

The goal is simple: know the lender’s likely NOI before the lender tells you.

Screen the File Before Submission