User Account

All Pages

What is the maximum initial amount of the mortgage

Assignment Help Accounting Basics
Reference no: EM133121122

Question - A property is expected to generate a stabilized NOI of 115,000 and the NOI is expected to remain constant. An investor is considering the purchase of this property for $2,300,000. A bank has offered to finance the investor's acquisition with a maximum LTV of 65% and a minimum DSCR of 1.35. The bank is prepared to offer a mortgage loan with monthly payments, a 4% interest rate on a 5 year term with a 25 year amortization.

If the investor proceeds with the acquisition with leverage, what is the maximum initial amount of the mortgage?

Reference no: EM133121122

Questions Cloud

Determine the menu sales price : The present cost to Robert and Abhav's Grass-fed Beef and Craft Brewpub for one a la carte ribeye steak is $5.90. At an annual inflation rate of 6 percent, calc
Values corporate social responsibility : What do you think of Tannis' strategy to in her reply about getting the coffee? Tata is obviously a company that values Corporate Social Responsibility.
Estimate the cost of capital for the ?rm : XYZ Inc. is an all-equity funded publicly traded ?rm, with 100 million shares outstanding, trading at $10 per share. Its current cost of capital is 7.5%.
What is the return on equity for the owner : The property generates a stabilized NOI of $300,000 and is expected to remain the same for the next 5 years. What is the return on equity for the owner
What is the maximum initial amount of the mortgage : The bank is prepared to offer a mortgage loan with monthly payments, What is the maximum initial amount of the mortgage
Does the actual content make a difference to your preference : Online content can be delivered as a service or a form of an ownership model (including rental). Does the actual content make a difference to your preference
Analyze the deal between myrna and ned : Analyze the deal between Myrna and Ned. Is the contract enforceable? Why or why not?
Compute the amount of expected total variable cost : Bloom Company predicts it will incur fixed costs of $257,000 and earn income of $459,900 in the next period. Compute the amount of expected total variable cost
Determine the price the investor would be willing to pay : Determine the price the investor would be willing to pay for the property using the discounted cash flow approach

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd