Eleanor Shellstrop wants to purchase an industrial building.She has identified one with NOI of $1,650,000.She thinks she
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- Eleanor Shellstrop wants to purchase an industrial building.She has identified one with NOI of $1,650,000.She thinks she can purchase it at a 6% cap rate.What price would she pay?
- Eleanor can come up with $10 million for a down payment. If she borrows the rest, what percentage of the purchase price must she borrow?
- If cap rates shift to 8% but the amount of the loan is unchanged, what will be the building's revised LTV?
- Debt Service Coverage Ratio is defined as NOI divided by total debt service. If the debt service due is 5% interest only, what is the debt service coverage ratio?
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