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question 14 & 15 A commercial property is valued at $5 million, and a business owner wants to take a loan where the LTV comes
question 14 & 15
A commercial property is valued at $5 million, and a business owner wants to take a loan where the LTV comes out to be 80%. How much is the owner aiming to borrow? $1 million $2 million $4 million $6 million QUESTION 15 An investor is considering a loan commitment from a bank for a commercial property. If the Net Operating Income of the property is $300,000 and the bank has provided a Debt Yield ratio of 6%, what is the loan commitment amount? $2 million $5 million $50,000 $18 millionStep by Step Solution
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