You come across a piece of vacant land. After analyzing the highest and best use, you determine to move forward. Here are your projections upon completion and stabilization Year 1:

Buildable SF 1,000,000 Potential Gross Income (PGI) $ 10,800,000 Vacancy & Collection - Commercial 4.00% $ (432,000) Effective Gross Income (EGI) $ 10,368,000 Expenses 30% $ (3,110,400) Net Operating Income (NOI) $ 7,257,600

You determine cap rates are 5.00% for similar projects.

5. What is the estimated value of the project upon completion and stabilization?

6. What is your loan amount at 80% Loan to Value (LTV)? 7. Assuming permanent loan financing of 4.00%, 30 year amortization and a minimum 1.20x DSCR, what is your maximum loan amount?