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1. A property is expected to generate $300,000 of NOl over the 12 months. Discussion with lenders leads to the conclusion that the mini-mum acceptable

1. A property is expected to generate $300,000 of NOl over the 12 months. Discussion with lenders leads to the conclusion that the mini-mum acceptable debt-coverage ratio will Be 1.20 and that loan terms will be 8% per annum, with 20-year amoruzation (monthly A.What is the maximum supportable annual debt service?

B. What: size loan does this imply!

2. Discussion with lenders indicates that a loan can be obtained for 75% of a property's market value. Loan terms will probably be 8% interest, 20-year amortization (monthly payments), with the rate renegotiable after 7 years. The property is estimated to be worth $200,000. A. How much can be borrowed? B. What will be annual debt service? C. What is the expected annual loan constant?

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