Question $1$

Loan on Real Estate.

A property that has recently been valued at $$5,500,000$ has an NOI of

$$550,000.$ A real estate lender is willing to make a $10\%$ interest only loan as long as the LTV ratio does not exceed $65\%$ and the DSCR is at least $1\mathrm{.}15.$

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 $$6,050,000,$ 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.