Is land cost included in LTC?
If a company already bought the land and is going to develop it, but they want to take out debt to do so, would the lender include that in their LTC when determing proceeds?
Question 2: If construction has already begun and now the developer wants to take out debt to finance the rest of the project, will the LTC only include future costs or the total project cost?
For Example: Project cost is 100M, we have complete 20M of it and now we want debt. If a lender loans at 70% LTC, could we get 70M or would they only be willing to offer 56M (70% of remaining costs ~80M)