If you’re in real estate, you probably know your gross revenue or net income. But beyond those basics, are you really using your numbers to guide decisions?
Here are five financial metrics that often get overlooked—but can be game changers if tracked regularly:
- Debt Service Coverage Ratio (DSCR)
This one matters if you’re carrying loans. It tells you whether your operating income can cover your debt payments. A DSCR below 1 is a red flag for lenders—and a warning sign for you. - Project-Level Profitability
Don’t just lump all your income and costs together. Track each flip, development, or rental property individually. Some projects carry the others—and some quietly bleed cash. - Operating Expense Ratio (OER)
What percentage of your income is going to things like utilities, repairs, and property management? A creeping OER can hurt your bottom line without you noticing. - Cash Conversion Cycle
How long does it take you to turn a dollar spent into a dollar earned? For developers especially, shortening this cycle means better cash flow and less need for financing. - Pipeline-to-Closed Ratio
For brokerages and agents: track how many deals in your pipeline actually close. It’s a great way to spot training gaps, process issues, or market shifts.
Tracking these numbers gives you more than just insight—it gives you control. And in real estate, where the margins can be thin and the stakes are high, that control is everything.
