Do you know your ‘Pivot Point?’
Pivot Point Tracking™ is a dynamic planning tool that assists Investors, Operators, Managers, Developers and Brokers in understanding how a property’s actual and projected performance will qualify it for financing. It is based on current underwriting criteria of the prevailing loan types (CMBS, LifeCo, SBA/USDA, Conventional, and Private/Discretionary capital).
What determines how much money you can borrow on a hotel? The Net Operating Income (NOI) leads to the loan amount, but NOI is not specifically the Pivot Point, as there are a multitude of factors that influence the ‘lendability’ of a property. Many data points influence the final loan, and by using our model of tracking and projecting performance, we give you a clear path for attaining the ideal ‘Pivot Point’ at which your property will qualify for the amount of debt you wish to obtain.
Pivot Point Tracking™ synchronizes your Trailing 12 month operating history with monthly underwriting analysis to help you maximize your Levered Internal Rate of Return (LIRR) by advising you when your asset qualifies for a waterfall financing event at the earliest moment possible in your ownership lifecycle. This can help you return capital to investors sooner than later, and also results in improving your bottom line by refinancing into lower cost debt. More efficiently.
Many factors influence the Pivot Point, including top-line gross income, growth projections, expense modeling, etc. Pivot Point Tracking takes into account a multitude of calculations and metrics such as Debt Yield (DY) requirements, Debt Service Coverage (DSC) ratio analysis, Loan to Value (LTV) limitations, Amortization (or interest-only) terms, and current interest rates for a variety of loan products. Pivot Point Tracking™ also provides indications of your various expense categories as a percentage of industry standards to help you identify particular areas of strength and weakness, providing you valuable datapoints to help you better plan and manage your business.
To utilize this powerful tool, please contact: