Shafiq Hirani CCIMReal Estate Advisor, REMAX Distinctive · Real Estate Advisor at RE/MAX Distinctive Commercial | Washington, DC | Your Guide To Profitable Real Estate Ventures

Boost Your Building's Income: Unlock Bigger Loans Now! #shorts

21 Aug 2026 · 3 min

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2:39

In this short, Shafiq Hirani CCIM explains that a building’s net operating income (NOI) must be at least 25% higher than its annual loan payment to meet the debt service coverage ratio (DSCR) required for larger loans. He highlights recent inflation data and modest rent growth (1.3% YoY) that limit revenue upside, urging owners to focus on expense reductions and income recovery rather than relying on rent increases. He outlines five common “NOI leaks” – under‑market rents, insurance overcharges, property tax assessments, outdated vendor contracts, and absorbed utility costs – and shows how fixing these can dramatically improve coverage, using a 9‑unit building owner named David as a case study. Hirani then provides three concrete actions: (1) ask lenders which loan programs you qualify for and what your current DSCR is; (2) download a free “NOI leak audit” checklist; and (3) schedule a complimentary 15‑minute NOI diagnostic if refinancing or selling within 6‑24 months. The overall message is that capital isn’t the constraint; improving NOI and DSCR is the key to unlocking bigger loans.

Chapters

Capital is not your constraint. In plain terms, your building's net operating income has to be at least 25% higher than your annual loan payment. Not equal to it. 25% above it. That is the gate. Only your building's income moves it, which is why every conversation on this channel keeps coming back to NOI and why it is not a slogan. It is the underwriting standard. July inflation came in at 3.4% with core at 2.5%. Apartment rents inside the inflation data grew just 1.3%, down from 2.1% the year before. Grocery prices rose 2.7%, restaurants 3.4%, and leisure and hospitality shed 40,000 jobs. In July. If your tenants work in that sector, watch your collections this fall. Capital is not your constraint. Your coverage ratio is. Rent growth won't fix it for you at 1.3%, which leaves the expense side and the income you are already entitled to but not collecting. Rebid your insurance. Appeal your assessment. Rebid the contracts that have auto-renewed for years. Recover the utility costs you are absorbing. Every dollar you move improves your coverage ratio, and coverage determines the size of your loan. David owns a 9-unit building. His coverage ratio was borderline, and he assumed the problem was the rate environment. It was not. We found $24,000 of annual income he was leaving on the table, units below market, utility costs he was absorbing, and a vendor contract that had crept up over 3 years. That moved his coverage from borderline to comfortable. Same rate, same market, different building. Here's what I would do this week. 1, call your lender or broker and ask 2 questions: What loan programs am I eligible for at my loan size? And what is my current debt service coverage ratio? If you don't know that second number, You don't know where you stand. 2, download my free NOI leak audit checklist. It walks you through the 5 places income slips out of an apartment building. Link in the description. 3, if you are 6 to 24 months from a refinance or sale, book a free 15-minute NOI diagnostic with me. Let's find the income that moves your coverage ratio before you sit down with a lender.