Maximum loan value calculation? Help
Hi I need to calculate the maximum loan based on the following assumptions. I appreciate your help! would also appreciate a calculation walk through. Thanks!
Max LTV: 65%
Min DSCR in stabilized year: 1.5
Min stabilized DY %: 9%
NOI: 525,361
NOI in stabilized year: 692,434
Cap Rate: 5.25%
Interest Rate: 5.00%
Am-Yrs: 30
Depends on if it's being UW to a stabilized or in-place NOI, but assuming stabilized for no particular reason:
1) LTV = .65 * 692,434/.0525 = $8.57MM (LTV Req * Property Value) 2) DSCR = 692,434 / 1.5 = 461,622 / .05 * ((1-(1/(1 + .05 / 12) ^ 360 (just a PV of min NOI over the loan term) = $7.165MM 3) DY = 692,434 / .09 = $7.693MM (NOI / DY req)
Max Loan Size = $7.165MM
2) is slightly off. I did it in excel using the PMT calc. Don't want to share cause I don't want this forum to turn into Chegg
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