“I typically do either three or six months of operating expenses and debt service.”

Jason Williams · Ironclad Underwriting Podcast · Why Monthly Cash Flow Matters More Than Annual Averages

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20:46

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What was described

Sets reserve levels at three to six months of operating expenses plus debt service

3-6 months of operating expenses and debt service

Said nearby on the same subject

“You actually have to put in three months of reserves, and that's what the debt service is paid from.”
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Jason Williams
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“It's a simple formula. And what it is, is it calculates a ratio, a number that takes your net operating income divided by your total annual debt service, your debt payments, and it gives you a number that can be used to compare.”
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Hard number 3-6 months shelf life, best-before 3 months Share this moment

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