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The bank has a$1,000,000 loan secured by Property A. This property has an NOI of $120,000 and a stablized NOI of $100,000. market oriented financing
The bank has a$1,000,000 loan secured by Property A. This property has an NOI of $120,000 and a stablized NOI of $100,000. market oriented financing terms include interest rate of 6.5% and amortization of 20 years. the lenders targeted DSC is 1.20. based on the maximum supportable loan amount, does this project support thhe loan. If not, what is the shortfall?
A. yes. there is no underwriting shortfall
B. the shortfall is $54,167
C. the shortfall is $68,578
D. the shortfall is $117,708
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Financial Planning & Analysis And Performance Management
Authors: Jack Alexander
1st Edition
1119491487, 9781119491484
