Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using DSCR the largest loan you can expect? After determining what the maximum loan amount is going to be use that number to determine what

image text in transcribedUsing DSCR the largest loan you can expect?

After determining what the maximum loan amount is going to be use that number to determine what the balloon payment will be at the end of the loan term? (use assumptions from above)

Ignoring the LTV constraint used above, what would the annual NOI have to be to justify a $18,000,000 loan, based on a DSCR of 1.35? (use loan assumptions from above)

Assume that a seller is asking $30,000,000 for an office building. You approach the bank about arranging a loan, and the bank's appraiser also concludes that the value of the property is $30,000,000. The following are the bank's standard terms for commercial mortgages: LTV 65% DSCR 1.45 Term 5 years Amort.30 years Rate 6.75% (monthly compounding) NO $2,950,000 What is the most the bank will loan you? Why? (use the assumptions from above)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions