What banks don’t want you to know.

What is it that banks don't want you to know about the stuff that you're doing as an example? People call it the DSC. What that means is, let's say your net operating income is $1 million. Well, what they're going to want is like a 1.2 or 1.3 ratio so that you have essentially $200,000 or $300,000 extra in your NOI to be able to cover your debt. I mean, that's a simplified way of saying it, but reality is it's like an insurance policy. So when the debt service coverages are 1.2, 1.3, even 1.4, let's say, and in really good times, they might bring them down to like 1.1. I've seen them lower. But so that's a trigger. So the bank now can come after people and go, oh, you're not hitting your debt service coverage requirement. Then they can open the hood, take a look inside, you know. So there's all these covenants and that's what the banks are afraid of right now.