Not hand writting answers please show excel formulas.
1. FGS obtain a first-lien, fixed-rate mortgage for 65% LTV. This mortgage has a 4% interest rate, with monthly payments. The loan term is 10 years, and the loan amortization period is 30 years. b. How much do they have to pay back at time 120? 1. FGS obtain a first-lien, fixed-rate mortgage for 65% LTV. This mortgage has a 4% interest rate, with monthly payments. The loan term is 10 years, and the loan amortization period is 30 years. b. How much equity must FGS put into the project? 5. Assume they take out the first lien-fixed rate loan and also get 90% of the equity from DarkPebble. Unfortunately, in year two Newbie Towers opens nearby - a very nice premium apartment complex, and FGS gardens are not as competitive. In year two they can only get $600 for a one-bedroom apartment, $800 for a two-bedroom apartment, and $1000 for a three-bedroom apartment. The real vacancy rate was 7.5% starting in year one, not 5% as they had modeled (Rents continue growing at 2 in subsequent years, however.) a. What is the DSCR for year 8? 5. Assume they take out the first lien-fixed rate loan and also get 90% of the equity from DarkPebble. Unfortunately, in year two Newbie Towers opens nearby - a very nice premium apartment complex, and FGS gardens are not as competitive. In year two they can only get $600 for a one-bedroom apartment, $800 for a two-bedroom apartment, and $1000 for a three-bedroom apartment. The real vacancy rate was 7.5% starting in year one, not 5% as they had modeled (Rents continue growing at 2 in subsequent years, however.) a. What is the DSCR for year 8? 5. Assume they take out the first lien-fixed rate loan and also get 90% of the equity from DarkPebble. Unfortunately, in year two Newbie Towers opens nearby - a very nice premium apartment complex, and FGS gardens are not as competitive. In year two they can only get $600 for a one-bedroom apartment, $800 for a two-bedroom apartment, and $1000 for a three-bedroom apartment. The real vacancy rate was 7.5% starting in year one, not 5% as they had modeled (Rents continue growing at 2 in subsequent years, however.) b. What is the unlevered (property) IRR for the project (put a negative sign if the project losses revenue)? 5. Assume they take out the first lien-fixed rate loan and also get 90% of the equity from DarkPebble. Unfortunately, in year two Newbie Towers opens nearby - a very nice premium apartment complex, and FGS gardens are not as competitive. In year two they can only get $600 for a one-bedroom apartment, $800 for a two-bedroom apartment, and $1000 for a three-bedroom apartment. The real vacancy rate was 7.5% starting in year one, not 5% as they had modeled (Rents continue growing at 2 in subsequent years, however.) c. What is the levered project return (i.e. the IRR assuming FGS has put in all of the equity?) (put a negative sign if the project losses revenue)? 5. Assume they take out the first lien-fixed rate loan and also get 90% of the equity from DarkPebble. Unfortunately, in year two Newbie Towers opens nearby - a very nice premium apartment complex, and FGS gardens are not as competitive. In year two they can only get $600 for a one-bedroom apartment, $800 for a two-bedroom apartment, and $1000 for a three-bedroom apartment. The real vacancy rate was 7.5% starting in year one, not 5% as they had modeled (Rents continue growing at 2 in subsequent years, however.) d. What is the return to DarkPebble? (put a negative sign if the project losses revenue)? 5. Assume they take out the first lien-fixed rate loan and also get 90% of the equity from DarkPebble. Unfortunately, in year two Newbie Towers opens nearby - a very nice premium apartment complex, and FGS gardens are not as competitive. In year two they can only get $600 for a one-bedroom apartment, $800 for a two-bedroom apartment, and $1000 for a three-bedroom apartment. The real vacancy rate was 7.5% starting in year one, not 5% as they had modeled (Rents continue growing at 2 in subsequent years, however.) d. What is the return to FSG? (put a negative sign if the project losses revenue)
