Dallas-Fort Worth Real Estate Investor Club

More Seasoned Input!!

  • 17 May 2021 3:46 AM
    Message # 10515848

    Hello community. I’d like to chat with or hear from someone a little more seasoned than me as an investor. 

    There’s a few financial (terms/acronyms) that I need a little better help understanding. Not just the definition, but what it’s telling me. (DCR “Debt coverage Ratio”,  BER “Break Even Ratio” and the Loan Constant). 

    I also would like to hear how anyone is, or has in the past compensated bird-dogs (ex. Hourly, by the property submitted, commission only on deals closed, etc.), and how have you expensed this cost (I.e. marketing, advertisement cost, etc.)?  


  • 17 May 2021 9:13 AM
    Reply # 10516646 on 10515848

    I'm not a seasoned investor, but I can answer the question about the BER.  It simply represents the percentage of time your property must be rented for the year in order for you to make a profit for that year.  For example, if your total costs are high and rental rates are low and your BER is 95%, your property must be rented for 95% of the year for you to make any money that year.  If the average vacancy for your property is 10%, then that could be a big problem.

  • 17 May 2021 12:04 PM
    Reply # 10517195 on 10515848

    Jason, that’s really simple and easy to understand information! Thank you for the insight. 

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