{"id":5788,"date":"2023-08-08T14:14:20","date_gmt":"2023-08-08T14:14:20","guid":{"rendered":"https:\/\/www.yardiinvestmentsuite.com/en-gb\/?p=5788"},"modified":"2024-03-15T11:52:10","modified_gmt":"2024-03-15T11:52:10","slug":"less-risky-business-with-yardi-debt-manager","status":"publish","type":"post","link":"https:\/\/www.yardiinvestmentsuite.com/en-gb\/blog\/less-risky-business-with-yardi-debt-manager\/","title":{"rendered":"Less Risky Business with Yardi Debt Manager"},"content":{"rendered":"\n

Financing the acquisition of your real estate assets can help to maximise your returns. However, borrowing money not only puts liability on your balance sheets. It can come with extra headaches and tedious tasks for you and your team, including, tracking amortisation and payment schedules, meeting covenants and tracking collateral and critical dates. Executing all these obligations accurately is necessary to minimise risk throughout the duration of a loan.<\/p>\n\n\n

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Consider a loan-to-value covenant, for example, a lender-imposed restriction that compares the value of a property to the loan\u2019s value. Borrowers need to monitor this figure because falling property valuation could potentially trigger additional financial costs that can further reduce the asset\u2019s return to investors.<\/p>\n\n\n\n

Another common covenant is the debt service coverage ratio, the ratio of NOI to the debt service amount. This figure indicates whether the property generates sufficient net operating income (NOI) to meet each month\u2019s debt payment. Revealing the borrower\u2019s likelihood of exceeding the thresholds and potentially falling into default. This covenant, too, requires close monitoring based on the current forecasts in place at the properties.<\/p>\n\n\n\n

Discovering you have breached a covenant as it occurs is far too late in the game to correct it. Having some visibility into forward-looking information is a key aspect of risk reduction. However, tracking loan information using manual data entry and transfers among multiple software systems is time-consuming, inefficient and prone to error. As a result, many borrowers are turning to new technology solutions that provide full visibility to reduce risks and drive informed decision-making.<\/p>\n\n\n\n

End-to-End Debt Management<\/h2>\n\n\n\n

That\u2019s why\u00a0Yardi Debt Manager<\/a>\u00a0is gaining traction among real estate borrowers. This solution eliminates the risks involved in manual loan tracking processes and delivers transparency to all users, including executives and key stakeholders. It centralises loan data, provides a comprehensive system for borrowers, eliminates spreadsheets, and automates calculations of complex loan terms.<\/p>\n\n\n\n

Users of Debt Manager gain transparency from investor to borrower with a complete system for real estate debt. The solution:<\/p>\n\n\n\n