Question 33 Not yet answered Legacy Development LLP will be building a small residential property in Pointe-Claire. The total budget for the project, including interest, is $2,500,000. The expected cash flows for the project are as follows: Marked out of 5.00 Flag question Land acquisition Start of quarter 1: $500,000 Soft costs: $100,000 Hard costs: $200,000 Soft costs: Start of quarter 2: $200,000 Hard Costs: $350,000 Soft Start of quarter 3: Costs: $200,000 MacBook Pro E3 DO0 F4 11 > F5 F6 F7 % $ 4 Gro ? 6 & 7 { * 8 } 9 Start of quarter 3: Soft Costs: $200,000 Hard costs: $350,000 Soft Start of quarter 4: Costs: $200,000 Hard costs: $350,000 The lender is willing to provide a construction loan with a maximum LTC of 65% including interest. The interest rate is expected to be 6% per year throughout the development process and will be capitalized quarterly. a) What is the construction loan balance at the end of Quarter 4? Answer: MacBook Pro ODO 000 F5 11 F7 Answer: Question 34 Not yet answered b) If the stabilized Nol at the end of Quarter 4 is $150,000 and comparable cap rates are 5%, calculate the amount the equity investors could withdraw from the project if they secure a 5-year mortgage with an interest rate of 4%, an amortization period of 25 years, a maximum LTV Marked out of 5.00 Flag question of 70% and a minimum DSCR of 1.25. Answer: Previous page Next page Question 33 Not yet answered Legacy Development LLP will be building a small residential property in Pointe-Claire. The total budget for the project, including interest, is $2,500,000. The expected cash flows for the project are as follows: Marked out of 5.00 Flag question Land acquisition Start of quarter 1: $500,000 Soft costs: $100,000 Hard costs: $200,000 Soft costs: Start of quarter 2: $200,000 Hard Costs: $350,000 Soft Start of quarter 3: Costs: $200,000 MacBook Pro E3 DO0 F4 11 > F5 F6 F7 % $ 4 Gro ? 6 & 7 { * 8 } 9 Start of quarter 3: Soft Costs: $200,000 Hard costs: $350,000 Soft Start of quarter 4: Costs: $200,000 Hard costs: $350,000 The lender is willing to provide a construction loan with a maximum LTC of 65% including interest. The interest rate is expected to be 6% per year throughout the development process and will be capitalized quarterly. a) What is the construction loan balance at the end of Quarter 4? Answer: MacBook Pro ODO 000 F5 11 F7 Answer: Question 34 Not yet answered b) If the stabilized Nol at the end of Quarter 4 is $150,000 and comparable cap rates are 5%, calculate the amount the equity investors could withdraw from the project if they secure a 5-year mortgage with an interest rate of 4%, an amortization period of 25 years, a maximum LTV Marked out of 5.00 Flag question of 70% and a minimum DSCR of 1.25. Answer: Previous page Next page