FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Finance & Real Estate Open Ended Question: Why do banks look at NOI when determining the risk associated with loan payments and not Rental Income?

Finance & Real Estate Open Ended Question:

Why do banks look at NOI when determining the risk associated with loan payments and not Rental Income? Remember that the DSCR = NOI/DS, but why is it not Rental Income/DS?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

23. Annie and Alvie have agreed to meet for lunch between noon (0:00 p.m.) and 1:00 p.m. Denote Annie s arrival time by X, Alvie s by Y, and suppose X and Y are independent with pdf s What is the...

Answered: 1 week ago

Question

★★★★★
Many retail stores offer to match or beat the price offered by a rival store. Explain why firms that belong to a cartel might make this offer.

Answered: 1 week ago

Question

★★★★★
Chapter + Activity-Based Costing Exercise 4.21 TDABC Bob Randall, cost accounting manager for Hemple Products, was asked to determine the costs of the activities performed within the company's...

Answered: 1 week ago

Question

★★★★★
Laurel, Inc., has debt outstanding with a coupon rate of 6.1% and a yield to maturity of 71% Its tax rate is 25%. What is Laurel's effective (after-tax) cost of debt? NOTE Assume that the debt has...

Answered: 1 week ago

Question

★★★★★
Tracy, an owner of an S corporation, has beginning basis of $13,000 in stock of the 5 corporation. During the year, Tracy contributed an additional $4,000 to partially offset the share of the S...

Answered: 1 week ago

Question

★★★★★
A Mexican company that supplies concrete and building materials is expanding its markets outside of its own country. The company is targeting the three additional countries of Guatemala, Nicaragua,...

Answered: 1 week ago

Question

★★★★★
What is one possible sign that a customer disturbance has started to escalate ? Servers fill patrons ' drink orders more quickly People in the bar are standing up and backing away Customers order...

Answered: 1 week ago

Question

★★★★★
Indicate which Periodic Table of Acquisition Innovation techniques is described by the following statement." Collects ideals and solutions from the public and encourages cross-sector collaboration to...

Answered: 1 week ago

Question

★★★★★
huck likes to build things, and over the years, he has enhanced the backyard of his modest home with the addition of a three - car garage, a swimming pool, a large shed, a children's playhouse, and a...

Answered: 1 week ago

Previous Question Next Question