Question: A developer wants to finance a project costing $ 2 million with an 8 0 percent, 1 0 - year loan at an annual interest
A developer wants to finance a project costing $ million with an percent, year loan at an annual interest rate of percent. The mortgage payment is by annual and it is a partially amortizing loan with a balloon payment of $ scheduled at the end of year The projects NOI is expected to be $ during year and the NOI is expected to increase at an annual rate of percent thereafter. The lender will require a debt coverage ratio of at least for year What would be the maximum loan amount that the lender would make based on the NOI and the DCR
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