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oan on Real Estate. property that has recently been valued at $5,000,000 has an NOI of $500,000. A real estate lender is willing to nake
oan on Real Estate. property that has recently been valued at $5,000,000 has an NOI of $500,000. A real estate lender is willing to nake a 9.5% interest-only loan as long as the LTV ratio does not exceed 70% and the DSCR is at least 1.25. a. Calculate the maximum loan amount. $ Round your answer to the nearest dollar. b. Calculate the equity dividend rate given that the property is purchased at its appraised value. % Round your answer to two decimals. C. If the property is sold after 5 years for $6,250,000, calculate the IRR that the equity investor will earn on her investment. % Round your answer to two decimals. d. Calculate the unleveraged IRR, i.e., if the property were purchased on an all-cash basis. % Round your answer to two decimals
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