One number gets you the loan. The other tells you whether to take it.
Every scenario below turns on the same move: Greenstreet runs two DSCRs on one file. Track 1 is what the lender funds on. Track 2 prices in vacancy, management, and CapEx — whether the deal actually survives. When they disagree, Track 2 is the reason a deal got stopped before it cost a dollar.
Rent covers the note. Most desks stop reading here.
Price in a 12% vacancy and the same deal goes underwater.
The deal, the catch, and the number that settled it.
These are constructed teaching examples, not customer histories. Names, quotes, figures, approvals, timelines, and outcomes are hypothetical. Individual results will vary.
Forty doors, six years of one-off financing, one blended number: 1.11x.
1.11x blended on an $18M balance, with two of the four markets doing most of the lifting. It took about a week to assemble, and it is the sheet Aurora now brings to a lender instead of a folder.
Two spreadsheets per file, 120 files a month. They deleted one of them.
A file that took twenty-five minutes to assemble now takes about six. Same team, roughly four times the files — that is arithmetic, not a promise, and it holds only as long as the rent roll going in is clean.
Track 1 said 1.18x. Track 2 said 0.98x. One vacancy assumption was the whole difference.
0.98x. Two hundredths under break-even, same building, same week. Track 1 would have funded it. Track 2 is the reason they walked before the deposit went hard.
Three deals died at the desk — before the appraisal invoice arrived.
All three cleared Track 1 and landed under 1.00x on Track 2. At $3,000–7,000 of diligence a file, that is $14,800 that stayed in the account. Each screen took about three minutes.
Ready to run your own deal through the same engine?