Consider the loan offer in file $$Mortgage Example$.$ Prepare a pro$-$forma statement for the first

year following the start of the mortgage. Assume the net operating income for the first year is

zero. Also note that the mortgage is interest$-$only, there is no amortization. Focus on the

financing part of the pro$-$forma, no need to list or fill the income or tax part of the pro$-$forma.

Focus on the following questions:

$1.$ How should you include the $$lender fee$$ described in the mortgage offer?

$2.$ How should you include the interest reserve account?

$3.$ Assuming NOI for the first year is zero, compute the before$-$tax net income