** Now that you have selected the hotel you want to invest in, you must decide between two lenders**
** LENDER SA** ** LENDER BH**
Profile: Local Bank/Balance Sheet Loan CMBS
Rate: 4.5% 4.0%
Term: 5 Years 10 years
Amortization: 30 Years 25 Years
Proceeds: 70% LTV 75% LTV
1. How much is each lender providing to you in total proceeds? Assume the purchase price equates
2. What is the loan payment?
3. Which lender would you choose? Why?