(B) Calculation of Equity to Withdraw at the End of Construction Period if Take-out Mortgage with these Terms and Conditions Property Value = NOI/Cap Rate: $750,000/0.06 = $12,500,000.00 Mortgage Loan = Property Value x Maximum LTV: $12,500,000 x 0.75 = $9,375,000.00 Mortgage rate per month: (compounded semi-annually) = 0.004123915

Debt Service Payment: $61,605.47

Annual Debt Service: $739,265.66 DSCR = NOI/Annual Debt Service Payment: $750,000/$739,265.66 1.014520273 The $9,375,000 loan does not respect the criteria of a DSCR greater than 1.25.

Can you please break down the calculation steps to calculate the mortgage loan amount that would respect a DSCR of greater than 1.25? This would then also change the remaining equity for investors since the load will be lower. Thank you. Mortgage Loan: $9,375,000.00

Outstanding Construction Loan Balance: $7,212,572.60

Amount Remaining for Equity Investors: $2,162,427.40